Regional Bank Concerns Continue, NFP In View

TYM3 deals at 116-08+, -0-09+ in line with late NY levels. A reminder that cash tsys are closed in Asia today due to the observance of a national holiday in Japan and will reopen in the London session.

• Cash tsys finished 1bp richer to 5 bps cheaper across the major benchmarks, the curve twist steepened pivoting on 3s.
• Tsys were pressured after the latest round of US data, Unit Labour Costs were firmer than expected and initial jobless claims were in line with estimates.
• Regional bank concerns came to the fore in the NY session, seeing tsys firm off session lows. Western Alliance Bank fell more than 50% after the FT reported the bank was exploring strategic options including a potential sale of all or part of the business. Western Alliance denied the story but the share remained under pressure.
• In FOMC dated OIS there are now ~90bps of cuts priced in for 2023.
• In Asia today the RBA's Statement on Monetary Policy provides the highlight. Further out April NFP provides the highlight today. Fedspeak from St Louis Fed President Bullard and Fed Governor Cook will also cross.