Richer In Asia

TYM3 deals at 115-04, +0-04+, observing a 0-10 range on volume of ~86k.

• Cash tsys sit 2-4bps richer across the major benchmarks, the curve has bull steepened.
• In early dealing tsys were marginally richer, as Asia-Pac participants used yesterday's cheapening as an opportunity to close short positions/enter fresh long positions in early dealing.
• Pressure on the USD, as an offer in USD/JPY spilled over, saw tsys continue to richen through the session.
• Despite the absence of a headline driver, gains briefly extended, 2 Year Yield showed below 3.9%. Gains moderated and tsys held richer observing narrow ranges with little follow through on moves for the remainder of the Asian session.
• Fed Governor Jefferson was on the wires early in the session, he didn't comment directly on the outlook for Fed policy, noting that the bank is still learning the full effects of tightening.
• On the docket today we have ECB speak from Lagarde, US Wholesale Inventories and Consumer Confidence. Fed VC Barr testifies before the Senate Banking Committee. We also have the latest 5-Year supply.