A Rangebound Asia Session For Core FI

News flow was light at best during Asia-Pac hours, with commentary from Dallas Fed President Kaplan ultimately revealing nothing in the way of fresh information. T-Notes last -0-01+ at 132-09+, sticking to the confines of a 0-03 range, with cash Tsy yields virtually unchanged across the curve.

• JGB futures nudged lower during the Tokyo morning as domestic participants reacted to the overnight cheapening in U.S. Tsys & EGBs, while the uptick in local/regional equity markets also added some pressure. The contract managed to recover from worst levels, printing 4 ticks below Monday's settlement levels at typing, while yields sit little changed in the cash space. Japan's Q1, P GDP reading was softer than expected, although markets looked through the release.
• There was no tangible reaction in the Aussie bond space on the back of the release of the RBA's May meeting minutes. This wasn't surprising, with the meeting itself already putting focus on the July decision, when the Bank will decide on whether or not to extend the coverage of its yield targeting scheme to ACGB Nov '24 from ACGB Apr '24. The July meeting will also see the Board consider future bond purchases, with the second A$100bn round of purchases under its government bond purchase program set to be exhausted in September. Elsewhere, Australian Treasury Sec. Kennedy spoke, underlining the country's economic outperformance and fiscal capacity. He also pointed to encouraging signs in the labour market. YM -0.5, XM -4.0, hovering a little above their respective session lows.