Rangebound In Asia, Block Flow The Highlight

T-Notes have stuck to a narrow 0-02+ range overnight, last -0-00+ at 132-15. The major Tsy benchmark yields are virtually unchanged across the cash curve. Headlines were light at best, although some block flow was observed, with the latter coming in the form of a TY/US flattener (-6.0K vs. +2.5K) and a 3,765 block buyer of TYM1 at 132-14+

• As a reminder, T-Notes finished around best levels on the day of the Thursday, with the belly of the cash curve outperforming after Wednesday's belly-led weakening, as 5- to 10-Year paper richened by ~4.5bp, in what was perhaps a case of participants looking back towards the slack in the labour market. Local data was mixed, with the latest Philly Fed survey missing exp., while weekly initial jobless claims data was a touch more favourable than exp. On the flow side an 8.4K block buy of TYM1 helped the broader theme during the early part of the NY afternoon, while the early stages of the quarterly Tsy futures contract rolling exercise kept volume ticking over. The space looked through broader focus on a tentative ceasefire agreement re: Israel & Palestine, while the tech space led the rally in equities amid the lower yield backdrop.
• European/UK flash PMI survey readings headline the broader economic docket ahead of NY hours on Friday, with existing home sales data due on the domestic slate. In terms of Fedspeak, we will hear from regional Fed Presidents Kaplan & Daly.