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Tight Asia Trade Ahead Of NFPs

US TSYS

A muted pre-NFP Asia-Pac session saw a modest early bid on the back of the dynamics that supported most of the Tsy curve on Thursday, with a sprinkling of regional worry surrounding the Taiwan situation also thrown in. The space then moved away from best levels as the Democrats came to an agreement re: the overarching finalities of the Inflation Reduction Act (voting, technicalities and the view of the Parliamentarian re: several matters will likely be addressed over the weekend/in the coming days), before the latest round of Chinese incursions surrounding Taiwanese borders in the Taiwan Strait provided some modest support.

  • TYU2 deals in the middle of an 0-08 range into London hours, -0-03 at 120-20+, on sub-standard volume of ~45K lots. Cash Tsys sit 0.5bp richer to 0.5bp cheaper across the curve.
  • Looking ahead, the aforementioned labour market report headlines the NY docket today (click for our full preview of that event), with comments from Richmond Fed President Barkin (’24 voter) also due.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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