Narrow Ranges In Asia, Powell In Focus

TYM3 deals at 111-05+, +0-06, a touch off the top of the 0-06 range on volume of ~70K.

• Cash Tsys sit 0.5-1bp richer across the major benchmarks.
• Moderate pressure was seen in early trade as Asia-Pac participants focused on the core FI pressure seen on Monday in the wake of particularly hawkish ECB speak from ECB's Holzmann.
• Amid light headline flow Tsys then ticked away from session cheaps, before a bid in ACGBs spilled over seeing Tsys firm to session highs. The RBA hiked the cash rate 25bps, however there was a dovish feel to the post-meeting statement.
• There was little follow through to the move, with notable underperformance noted vs. ACGBs. Tsys then respected narrow ranges for the remainder of the session.
• Fed Chair Powell's semi-annual Monetary Policy report to the Senate Banking Committee provides the highlight of the broader macro Tuesday. Also on the wires we have Wholesale Inventories and Consumer Credit. There is also the latest 3-Year Tsy supply.