Pares Early Gains, Cash Closed In Asia Today

TYM3 deals at 116-11, +0-14, a touch off the base of the 0-15 range on volume of ~120k.

• Cash tsys were closed in Asia today due to the observance of a national holiday in Japan. They will reopen in the London session.
• Tsy futures gapped higher in early dealing, concerns about regional US banks escalated as PacWest fell as much as 60% in post market trade following a report that it's said to weigh strategic options including a sale. Oil fell ~7%, and e-minis were pressured.
• There was no follow through on the early move higher, tsys ticked away from session highs as WTI and e-minis erased losses to trade marginally firmer.
• Further PacWest headlines have crossed this afternoon, with the bank stating it has not experienced out of the ordinary deposit flows and that its planned sale remains on track.
• President Joe Biden has picked Federal Reserve Governor Philip Jefferson for a promotion to vice chair and will nominate economist Adriana Kugler to an open board slot, reports suggested.
• In Europe today the latest monetary policy decision from the ECB provides the highlight. Further out we have Initial Jobless Claims and Trade Balance.