Cash Tsys trade in a light twist flattening manner in early Asia-Pac dealing, with the major cash Tsy benchmarks running 1.5bp cheaper to 0.5bp richer, pivoting around 7s.

• The weekend comments from Chinese health officials pointing to unwavering support for the country’s current zero COVID settings are in the driving seat early this week, with the higher short-term inflation and weaker growth outlook (from a global perspective) stemming from China’s ZCS resulting in the light twist flattening of the curve outlined above (a reminder that Tsys ultimately twist steepened on Friday).
• TYZ2 deals around the base of its early 0-07 range, last -0-02 at 109-31+, with the previously covered source reports re: back-channel U.S.-Russia discussions centred on preventing further escalation in the Ukrainian war perhaps limiting the early bid.