Yields Firm As Curve Bear Steepens

TYH3 deals at 114-20, -0-04+, in the middle of its 0-08+ Asia-Pac range on volume of ~61K.

• Cash Ysys have bear steepened, running 1-5bps cheaper across the major benchmarks.
• Tsys were modestly richer in early trade as an offer in USD/JPY pressured the greenback in early dealing aiding the space, after an initial adjustment cheaper, catching up to futures moves after the elongated weekend.
• Later as Chinese cash markets opened, the USD was bid, U.S. equity futures reversed early gains and Tsys cheapened albeit without any overt headline driver.
• The cheapening marginally extended as Chinese Q4 GDP was firmer than expected, as were monthly economic activity readings.
• The flow side was highlighted by a block seller in UXY (901 lots).
• In Europe today national CPI data from Germany provides the highlight. Further out we have Empire Manufacturing as well as CPI data from Canada. Elsewhere, Fedspeak from NY President Williams is on the wires late in today's NY session.