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Off Best Levels, In Tight Ranges

US TSYS

Tsys have backed away from best levels as the early Asia bid moderates a touch, with fairly tight ranges still in play as TYU2 deals in the middle of its own 0-08 range, last -0-09+ at 120-04. Meanwhile cash Tsys run 1.0-2.5bp richer across the curve, with some light bull flattening still in play in the wake of the post-FOMC twist steepening observed into the NY close. Macro headline flow remains light and the move in Tsys is quite muted when you consider that USD/JPY has shed over 100 pips as Tokyo FX dealers react to the potential for a slower, data-driven round of hikes from the Federal Reserve, with that particular move perhaps being exacerbated by short JPY positioning.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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