30-Year JGB Supply Eyed After Slow Start To Tokyo Session

T-Notes continue to tread water and trade in close proximity to Monday's close, last -0-00+ at 133-24+. Cash Tsy yields sit marginally lower across the curve, while Eurodollar futures run unch. to +0.5 tick through the reds. Broader news and data flow has been rather subdued in the early part of the Asia-Pac session. The supply of 3-Year debt and comments from Fed's Mester on inflation risks will grab attention today, ahead of Wednesday's much awaited CPI report.

• Japanese markets reopened after the long weekend, with JGB futures happy to hold a tight range this morning. The contract last trades at 152.15, 15 ticks shy of Friday's settlement. Cash JGB yields generally sit a touch higher across the curve. The market has shrugged off Japanese BoP current account balance, with the monthly Eco Watchers survey providing the next point of interest. The MoF will auction Y900bn of 30-Year JGBs today.
• The longer end of ACGB yield curve underperforms as modest bear steepening has crept in at the reopen. YM trades unch. & XM sits -1.5 as we type. Bills last seen unch. to 2 ticks lower through the reds. Australia's ANZ weekly consumer confidence gauge fell 3.1% M/M on the back of new snap lockdowns in Queensland and Victoria, dropping past the breakeven 100 level for the first time since autumn 2020. Focus in Oz moves to the auction for A$100mn of the 2.50% 20 Sep '30 linker and the latest NAB Business Confidence survey.