All About The Fiscal

Tweets from U.S. President Trump, outlining the potential for standalone U.S. airline and PEPP support packages applied pressure to the U.S. Tsy space during Asia-Pac trade, although the move in Tsys was only modest, with the fiscal offerings from trump only reflecting proverbial pennies vs. what was being discussed in the broader talks that came to an abrupt end on Tuesday. T-Notes trade -0-01 at 139-00+, with cash Tsys sitting unchanged to 1.2bp cheaper across the curve at typing.

• JGBs held a tight range, with futures +2 at typing and the long end outperforming in cash trade, in light of the late NY U.S. fiscal developments. 3-5 Year BoJ Rinban ops saw the offer cover ratio nudge higher to 3.50x vs. 2.84x last time out.
• Aussie bonds saw 3-Year yields tag a fresh low, with greater odds of further RBA easing priced, in addition to a budget and bond issuance update that weren't as loose as most of the sell-side expected. YM +3.0, XM +3.5, a touch shy of early Sydney highs.