Asia-Pac Session Kicks Off On A Low Gear

A muted start to the Asia-Pac session has seen T-Notes hold a 0-02+ range. The contract has crept slightly higher and last sits -0-00+ at 139-18. Cash Tsy yields trade just shy of neutral levels. Eurodollar futures last seen -0.5 to +0.5 tick through the reds.

• JGB futures re-opend slightly lower, but have pared losses since and last trade at 151.97, 1 tick below settlement and off the session high at 151.99. Cash JGB curve runs marginally steeper (albeit 20s have richened a tad) with 2s outperforming. Focus moves to a liquidity enhancement auction for off the run JGBs with 5-15.5 Years until maturity. With Chief Cabinet Secretary Suga elected the new LDP leader, the appointment of party executives/the new Cabinet is under scrutiny.
• In Australia, YM unch. & XM +0.9 tick as we type. Cash ACGB yields mostly sit slightly below neutral levels, save for 2s. Bills last seen unch. to +1 tick through the reds. Eyes are on the RBA Sep MonPol meeting minutes & house price index, due at the bottom of the hour, as well as Chinese activity data, due half an hour later.