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Tight Ranges, Back From Block Buy-Inspired Bests

US TSYS

Cash Tsys saw a light extension of Thursday’s bull steepening theme during Asia-Pac hours, with the major benchmarks last 0.5-1.5bp richer. TYM3 is +0-04 at 120-25 into London hours, just off the top of a tight 0-04 range, on modest volume of ~49K.

  • A round of activity surrounding a block buy of TU futures (+6.4K) provided the highlight of the session and promoted the early bull steepening.
  • The space looked through a story from Japan’s Kyodo News, which suggested that countries are considering a near-total ban on exports to Russia. A reminder that BBG ran a similar story on Thursday.
  • There was no impact from the latest round of firmer than expected core CPI data out of Japan, as it isn’t seen as much of a needle mover when it comes to next week’s BoJ monetary policy meeting.
  • The weekly update from the Fed saw a modest uptick in both discount window and BTFP usage, while FIMA usage nudged lower.
  • Fedspeak from Harker & Bostic stuck to the respective, well-documented views.
  • Preliminary PMI data from across the globe headlines Friday. There will also be a range of ECB speakers and comments from Fed Governor Cook (with the Fed going into pre-meeting blackout this weekend).
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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