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10-Year JGBi Supply Eyed, RBA Returns To The Market

BOND SUMMARY

T-Notes have fluctuated within a tight range in search of fresh catalysts, testing Wednesday's low at 140-00 twice in the process; they last trade -0-00+ at 140-02. Yields are little changed across the cash curve. Eurodollar futures unch. to +0.5 tick through the reds. Little that would attract wider interest on the Asia-Pac docket today.

  • JGB futures dipped through overnight lows before bouncing off worst levels; the contract last deals at 152.28, -12 ticks vs. settlement. 30s & 40s underperform in cash trade, with 2s & 3s outperforming. Focus falls on the imminent auction of 10-Year JGBi's.
  • In Australia, YM -0.5 & XM -4.0. Curve runs steeper in cash trade, yields sit higher. Bills trade unch. to -1 tick through the reds. The RBA offered to buy A$500mn of gov't securities (steady vs. yesterday), focusing on Nov '22, Apr '23 & Apr '24 lines.

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