Tight Asia Trade

TYZ2 deals in a very narrow 0-04+ range, with the previously flagged block sales in the contract helping to facilitate a look below Thursday’s low, before the contract ticked away from worst levels to deal -0-01+ at 111-28+ at typing. Cash Tsys run 1bp cheaper to 0.5bp richer across the curve, twist flattening, with a pivot around 10s.

• There hasn’t been much headline flow outside of the previously covered hawkish Fedspeak deployed during the NY-Asia crossover.
• The lack of meaningful headline flow, coupled with the ongoing holiday in China, has resulted in a typically limited round of pre-NFP Asia-Pac dealing.