TY Sticks to Asia Range, Little Movement Post-BoJ

TYM4 +0-04 at 109-30, sticking to the 0-06 range established in Asia-Pac hours, volume running at a healthy ~247K.

• Contract above yesterday’s low (109-24+), which provides initial support.
• Initial firm resistance at the 50-day EMA.
• Cash Tsy yields little changed to 1bp lower.
• Fed pricing steadies after the recent removal of rate cut premium.
• FOMC-dated OIS fully discounts a 25bp cut through the July meeting, with ~70bp of cuts priced through year end.
• thatClick for our preview of tomorrow’s FOMC decision.
• A reminder that US lawmakers have reached a funding deal to avert a partial government shutdown, with the agreement funding the government through Sep 30.
• Building permits & housing starts data will cross in NY hours, with 20-Year Tsy supply also due.