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On The Front Foot In Asia

US TSYS

Tsys were pretty much bid from the off in Asia-Pac dealing, with reports of pockets of COVID-related social unrest across some of the major Chinese cities and a continued uptick in new daily COVID cases in China dominating news flow. That weighed on e-minis, as well & HK & Chinese equities, providing a further leg of support for Tsys, via cross-market flows. Weakness in crude oil futures further built on the cross-market support for Tsys.

  • TYZ2 deals just off the top of its 0-13+ range into London hours, +0-14 at 113-15, on volume of ~157K (although 63K of that is roll related), while cash Tsys run 3-4bp richer across the curve.
  • Overnight flow was headlined by a block seller of TU futures (-4,850).
  • Looking ahead, news surrounding the ongoing EU negotiations re: the proposed Russian oil price cap will generate attention on Monday, while the NY docket is headlined by the Dallas Fed m’fing activity index and Fedspeak from NY Fed President Williams & St. Louis Fed President Bullard.
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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