TYH2 Back Towards Best Levels

TYH2 has ticked back towards best levels after the previously flagged pullback, last dealing +0-18 at 127-07+. Meanwhile, cash Tsys run 3-8bp richer across the curve. There hasn’t been much in the way of game changing headline flow since the Asia-Pac re-open, with some of the Western nations still clearly cognisant of the risks surrounding the potential for Russia to push deeper into Ukraine. Early Asia trade saw some quarters suggest that the Russian-backed separation of Luhansk and Donetsk may represent the end game when it comes to the standoff, which may have helped the pullback from early extremes when it came to broader risk aversion. Still, the lack of finality that is apparent at present means that headline risk remains at the forefront of participants’ minds, leaving a defensive imprint on U.S. Tsy/e-mini trade.