Off Best Levels In Holiday-Thinned Trade

TYU2 prints +0-03 at 119-11+ into European hours, 0-01+ off the base of its 0-10+ overnight range, on limited volume of ~45K lots, while cash Tsys are closed for the Independence Day holiday. Early Asia trade was shaped by recessionary worry as Asia-Pac participants reacted to Friday’s softer than expected ISM m’fing reading. Note that the latest Russian advances in Ukraine and rising COVID cases in China’s Anhui province did little when it came to generating wider price action. That was before an uptick in Chinese equities (erasing early losses) allowed e-minis to find a bit of a base (S&P 500 e-minis last -0.5%), facilitating a pullback from best levels in Tsy futures. TYU2 respected Friday’s range after a pullback from Friday’s richest levels was observed ahead of the weekend.

• Note that the EDZ2/H3 & EDZ2/Z3 spreads operate a touch above their respective negative extremes last printing around -15bp and -75bp, respectively.
• There isn’t much in the way of notable economic data releases slated during the remainder of the day, meaning that various rounds of ECB speak will headline during a curtailed Tsy futures trading session.