Aussie Bonds Lick Post-RBA Wounds, ACGB Auction & BOJ Rinban Ops Eyed

Headline flow has been muted so far, providing little in the way of meaningful catalysts for core FI space.

• T-Notes ground lower from the off before finding support at 118-08+ and ticking away from lows. TYU2 last seen -0-03 at 118-10+, Eurodollars run unch. to -1.0 tick through the reds. Cash U.S. Tsy yields sit 0.8-1.3bp higher across the curve. Wholesale inventories & 10-Year Tsy auction headline the local docket today.
• JGB futures hold a tight range, last trade at 149.66, 15 ticks above previous settlement. Cash JGB curve has bull flattened a tad. The BoJ will buy 1-25 Year JGBs during today's round of Rinban operations. Elsewhere, the final reading of Q1 GDP & April BoP current account balance provoked no reaction in the space, focus turns to Eco Watchers Survey.
• Cash ACGB yields retreated as cash trading re-opened in Sydney, taking cue from their U.S. peers. They are partly unwinding yesterday's RBA-inspired gains. The yield curve runs steeper, sits lower. The steepening impetus has filtered through into futures contracts, with YM last +6.5 & XM +2.5. Bills trade 2-11 ticks higher through the reds. The AOFM will auction A$800mn of ACGB Sep '26 at the top of the hour.