Richer After Weekly Claims Rise

TYU3 deals at 113-22, -0-01+, in line with late NY levels.

• Cash tsys finished 4-9bps richer across the major benchmarks, the belly led the bid.
• Tsys firmed off session lows as the latest rounds of US Data showed the highest rise in Initial Jobless Claims since October 2021, there was also a small upward revision to the prior number.
• The short end of the curve marginally lagged the bid due to expectations of increased Tsy bill sales as the Tsy looks to rebuild the cash balance to a level in line with policy.
• FOMC dated OIS price ~7bps of hikes into the June meeting with a terminal rate of ~5.30% in July. There are ~30bps of cuts priced for 2023.
• Office PPI and CPI data from China headline in Asia today. Further out the calendar is thin, matters north of the border provide the highlight as the latest Canadian employment report crosses.