Off Best Levels As Europe Settles In

Tsys soften a touch in recent trade, alongside Bunds, eating away at the very limited Asia-Pac tick lower in yields (which came in the wake of the well-documented, short-lived Wagner Group-centric unrest in Russia and a negative return for Chinese equity markets after their elongated weekend). There hasn’t been the much in the way of headline flow to trigger the move, so we would just point to European participants reacting to the wind down in internal Russian tensions as the driver of the limited cheapening move. That leaves the major cash benchmarks 0.5-1.0bp richer on the day, while TYU3 is +0-02, 0-01 off the base of a narrow 0-05 range.