Richer In Asia, TYH3 Deals Through 200-DMA

TYH3 deals at 116-06, +0-09, marginally off the top of its 0-13+ range on elevated volume of 133K.

• Cash Tsys are 4-5bps richer across the major benchmarks, the belly is marginally outperforming.
• Spillover from bids in ACGBs, in lieu of softer than expected Australian labor market data, and JGBs, as post-BOJ positioning dominated in Tokyo, supported Tsys in early trade.
• Tsys firmed further as technical flows came into play, TYH3 dealt through overnight highs and its 200-DMA, as 10K of screen lifts helped the extension. 5-, 7- and 20-Year yields also showed below their own 200-DMAs.
• A smoothly digested 20-Year JGB auction aided the bid at the margins.
• ECBs Lagarde's speech at the WEF headlines the European session, while the Norges Bank monetary policy decision is also on the wires. Further out we have U.S. housing starts, weekly jobless claims and the latest Philly Fed survey. There is Fedspeak from Boston Fed President Collins and Fed VC Brainard, as well as the latest 10-Year TIPS supply.