Risk Aversion Is Boon For Core FI, Antipodean Markets Closed

Broader aversion to risk lent support to core FI space, as looming global policy tightening, China's difficult Covid-19 situation, and Russia's ongoing invasion of Ukraine continued to undermine market sentiment. Emmanuel Macron's victory in the French presidential runoff failed to alter the otherwise gloomy risk backdrop, despite removing a key risk to political stability in Europe.

• T-Notes were in demand overnight, with TYM2 last seen +0-16 at 119-14, after topping out at 119-16. Eurodollar futures trade 5.5-11.5 ticks higher through the reds. U.S. Tsy yields sit 4.0-5.9bp lower across the curve, with its belly outperforming. The local economic docket lacks notable risk events.
• JGB futures pushed higher, extending gains after the Tokyo lunch break. JBM2 last changes hands at 149.29, up 20 ticks from the previous settlement. Cash JGB yield curve has flattened a tad. The BoJ conducted the pre-announced round of fixed-rate 10-Year JGB purchases in defence of the official cap on 10-Year yields.
• Antipodean financial markets were closed in observance of the ANZAC Day.