Narrow Ranges In Asia, FOMC In View

TYZ3 deals at 105-30, -0-07+, a 0-04 range has been observed on volume of ~80k.

• Cash tsys sit 1-2bps richer across the major benchmarks, light bull flattening is apparent.
• Tsys have observed narrow ranges for the most part in Asia today, moves have had little follow as the proximity to this evening's FOMC rate decision is perhaps keeping participants on the sidelines.
• The space looked through a weaker than forecast Chinese Caixin Mfg PMI print. The USD was marginally firmer in Asia and e-minis were a touch lower.
• FOMC dated OIS price no change in today's meeting, a terminal rate of ~5.45% is seen in January with ~55bps of cuts by Sep 24.
• The aforementioned FOMC rate decision headlines today's docket, the MNI preview is here. We also have US construction spending, ISM Manufacturing, job openings and light vehicle sales.