Tight Range Early On, Bound By Conflicting Headlines

The impact of an uptick in e-minis (with the 3 major contracts up 0.3-0.7% at typing) and slightly firmer than expected core CPI data out of Japan (which is unlikely to trigger BoJ action given the Bank’s previous acknowledgement re: the likelihood of such a dynamic and it playing down the need to adjust policy settings owing to the cost-push nature of inflation at present) being negated by news that 3 COVID cases have been detected outside of quarantine facilities in the Chinese city of Shanghai (we will see if this impacts the city’s re-opening plans). TYM2 has stuck to a narrow 0-04+ range thus far, last dealing +0-02 at 119-24+, while cash Tsys run little changed to 1bp cheaper across the curve.