At Highs Ahead of BOJ & NFP

ACGB have shunted higher as the Asia-Pac region reacts to Thursday's wider market moves and Tsys extend their rally. Futures are just off best levels, with YM +13,4 & XM +10.3.

• All eyes will be on the direction in U.S. equity futures & Tsys in Asian trade, given that US Bank-induced equity weakness, along with softer labour market data, was a key contributor to U.S Tsys strength in NY trade. At the time of writing, S&P 500 futures were trading -0.27% since NY close.
• Cash ACGBs are 7-13bp richer, bull steepening.The AU/US 10-year yield differential +3bp at -25bp, continuing the recoil from its new cycle low of -32bp hit intraday yesterday. Swaps are 10-14bp firmer with EFP slightly tighter. Bills are just off session highs at +7-15bp, led by the reds.
• RBA dated OIS are 8-17bp softer for meetings beyond May led by December with terminal rate pricing below 4.0%, at 3.94% versus 4.07% yesterday. With data dependency the catch-cry of the RBA this week, pricing for a 25bp hike at the April meeting has declined to a 50:50 chance ahead of key employment data on Thursday.