A Low Conviction Session For Core FI

T-Notes wavered within a 0-03 range overnight, with price action driven by gyrations in e-minis, and last trade +0-00+ at 139-16+. Cash Tsy yields sit slightly shy of neutral levels across the curve. Eurodollar futures run unch. to +0.5 tick through the reds. Broader-picture/U.S.-centric news flow was rather unimpressive, with markets shrugging off U.S. President Trump's refusal to clearly commit to a peaceful transfer of power after the election and insistence that he could veto any tightening of the FDA's rules for emergency clearance of a Covid-19 vaccine. Coming up in the U.S. today we have another chunky portion of Fedspeak (including comments forom Chair Powell), initial jobless claims, new home sales and 7-Year Tsy supply.

• JGB futures lacked conviction either, as a firmer re-open was faded into the lunch break, which was followed by another uptick. The contract sits at 152.24, 3 ticks above settlement. Cash JGB yields trade mixed as we type, with 40s marginally underperforming after a soft auction of 40-Year JGBs. The offering drew the lowest cover ratio since 2015, while highest yield was lower than forecast. Little of note in the minutes from the BoJ's Jul MonPol meeting.
• Down under, YM +1.0 & XM -0.5 as we type. Marginal bull flattening crept into the cash ACGB space, with yields trading unch. to -1.0bp. Bills sit unch. to +1 tick through the reds. Domestic fiscal matters drew some attention as Treasurer Frydenberg delivered a speech on the government's two-stage strategy for the economic recovery and unveil an overhaul of Australia's insolvency rules.