Aussie Bonds Under Pressure, Japan Markets Shut For Holiday

Activity in Asia has been limited owing to a public holiday in Japan, where Golden Week holidays just got under way.

• Aussie bond futures have wavered ahead of the ACGB 0.50% 21 Sep '26 auction at the top of the hour, with participants preparing for next week's RBA MonPol meet. YM trades -6.5 & XM -8.0 amid expectations that the Reserve Bank could raise the cash rate next Tuesday. Bills last seen 2-8 ticks lower through the reds. Cash ACGBs took a hit at the re-open and extended losses from there, with yields last seen 6.7bp-8.2bp higher across the curve.
• T-Notes have erased opening gains and last trade +0-06+ at 119-18, with Eurodollar futures running 1.5-3.5 ticks higher through the reds. Cash Tsys are closed until London hours due to the market closure in Tokyo. Looking ahead, PCE data, MNI Chicago PMI & final reading of U. of Mich. Sentiment will take focus in the U.S. on Friday.