Biased Higher In Asia

A (familiar) tight Asia-Pac session for T-Notes, sticking to a 0-02+ range last -0-01 at 132-13+. The cash Tsy curve has seen some modest twist flattening, with 30s richening by 1.0bp. U.S. fiscal matters (and the lack of movement there) continue to garner the most attention in terms of discussions, while the U.S. Senate passed bipartisan legislation aimed at countering China's swelling global influence through investing more than $200bn in American tech & research, as expected. 905 lots of WNU1 were lifted, which headlined on the flow side.

• JGB futures stuck to a narrow range, last +6, with the long end leading the bid in the cash JGB space given the overnight lead from U.S. Tsys, as 20s and 30s richened by 1.5-2.0bp. There was nothing of note on the local news front, while the latest round of BoJ Rinban operations revealed flat to higher offer to cover ratios across the 1- to 10-Year buckets when compared with the prior respective operations.
• Aussie bond futures firmed a little during early Sydney dealing, adding to overnight gains, YM +1.1 & XM +3.2 at typing, with roll activity headlining thus far (the YM & XM rolls both traded to the left). Some trans-Tasman impetus in the form of a firmer NZGB space may have provided some early support. Still, the space is off richest levels given the softer cover ratio and modest pricing of the weighted average yield through pre auction levels (0.13bp per Yieldbroker) in the latest round of ACGB Nov '31 supply. The latest address from RBA Assistant Governor Kent didn't provide much in the way of market changing information. Elsewhere, we learnt that Melbourne's COVID restrictions would be loosened a little in the coming days.