Richer In Asia

TYH3 deals at 113-15, +0-07+, a touch off the top of its 0-08+ range on volume of ~89K.

• Cash Tsys sit 2-5bps richer across the major benchmarks, with the curve flattening.
• Local participants focused on the lack of firm pushback to the dovish market reaction to last week’s FOMC in Fed Chair Powell’s Tuesday address with the late NY corporate and Tsy supply-induced cheapening aiding entry.
• The richening held through the session with block trades in TU (+4.5K) TY futures (+1.5k) aiding the bid, although there was some interest in downside exposure via the TYH3 115.00/114.50 put spread (+2.5K).
• There was nothing in the way of meaningful macro headlines, and the space looked through U.S. President Biden’s State of the Union address.
• In Europe today there is a thin data slate, ECB speak from Elderson and Lagarde provide the highlight. Further out we have a number of Fed speakers including NY Fed President Williams, Gov Cook, VC Barr, Atlanta Fed President Bostic, Minneapolis Fed President Kashkari ('23 voter) and Gov Waller. We also have the latest 10-Year Tsy Supply.