No Spill over From JGB Dip, FOMC Eyed Later

TYH4 is trading at 111-23, + 03+ from NY closing levels.

• US data out overnight caused a sell off in Treasuries, 10y yields hit a high of 4.10% on the back of stronger JOLTS jobs data, but the move was quickly reversed closing at 4.03%, back to Jan 16th levels. The 2y has underperformed the move lower, hitting a high of 4.38%, to only recover about half the move post data back closing at 4.32%.
• Cash Yield have opened unchanged here in Asia, as we await FOMC later tonight.
• Overnight, we saw dip buying into month end with month end extensions for US Tsys: +0.06yr
• BoJ Summary Of Opinions was just released and has caused a sharp pullback in JGB futures, the 10Y is -38 compared to settlement levels. However, there has so far been no spillover to Tsys.
• Treasury curves were flatter overnight with 2s10s -5.251 at -30.065, as bonds continue to outperform following US Tsy cut Q1 borrow est's from $816B to $760B
• Busy night for Data: Mortgage Applications, ADP Employment, MNI Chicago PMI and finally FOMC rate decision.