Richer In Asia, Powell In Focus

TYH3 deals at 113-19+, +0-03+, a touch off the top of its 0-09+ range on volume of ~139K.

• Cash Tsys sit 1-5 bps richer across the major benchmarks, the curve has bull steepened.
• Participants faded Monday's leg of post-NFP cheapening in early Asia-Pac dealing after frenetic moves in recent sessions.
• The richening held through the Asian session.
• A couple of block buys in TU futures (+3.5K & +5.5K) aided the bid.
• Tsys looked through weakness in ACGBs as the RBA raised rates 25bps. The accompanying hawkish guidance noted that rates will need to rise further and more than once.
• The U.S. trade balance headlines an otherwise thin data slate today. More widely, Fed Chair Powell provides the macro highlight in his first remarks since last week's Fed meeting. 3-Year Tsy supply is also due.