Tight Range In Asia, Modest Pressure As China Seemingly OKs U.S. IPOs

A bid for Chinese equities amid suggestions that China will not ban domestic companies from listing equities in the U.S. (per CNBC sources) allowed core FI to move away from best levels of the day during Asia-Pac hours, although ranges were contained.

• T-Notes last +0-05+ at 134-14, operating within a 0-03+ range on volume of ~72K. Cash Tsys are little changed to 1.0bp cheaper across the curve, with a very modest bear steepening bias evident after the light bull flattening that was evident during Fed Chair Powell's Wednesday press conference. 8.0K of screen selling of TUU1 provided the highlight on the flow side. The early NY evening saw the Senate advance the bipartisan infrastructure agreement to the debate/amendment stage, with Democratic Senator Sanders noting that he has the 50 votes required to force the measures through.
• To recap, T-Notes finished just shy of late NY highs after initially trading lower in the wake of the release of the latest FOMC statement. The statement erred on the hawkish side, with the Fed noting that the "economy has made progress toward these goals, and the Committee will continue to assess progress in coming meetings." The Fed also noted that indicators of economic activity and employment have "continued to strengthen," rather than the prior statement's simply "strengthened." Powell then reinforced the Fed's well-travelled underlying message in his post-meeting press conference, as he noted that "we have not reached substantial further progress yet"…"we see ourselves as having some ground to cover to get there." This allowed Tsys to recover. The curve finished a little flatter on Wednesday, with paper out to 5-Years virtually unchanged come the bell, while the longer end richened by ~1.5bp.
• Thursday's U.S. docket will be headlined by the advance Q2 GDP print and 7-Year Tsy supply.