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Calm Re-open For Core FI, BoJ & RBA Bond Purchase Ops Due

BOND SUMMARY

It has been a calm start to the week for core FI, with little in the way of notable news flow from over the weekend to digest. T-Notes have stuck to a tight range so far, last trade +0-02 at 132-16. Cash Tsy yields are marginally mixed. Eurodollar futures last seen unch. to +0.5 tick through the reds. There are no tier 1 risk events slated for Asia-Pac hours today, with the latest Chicago Fed national activity index reading & Fedspeak from Brainard, Bostic, Mester & George set to headline during NY hours.

  • JGBs have paid little attention to local headlines surrounding potential extension of Covid-19 state of emergency in Japan. Futures sit at 151.45, 4 ticks above last settlement as we type. Cash JGB yields are broadly lower, albeit only marginally. The BoJ are set to conduct 1-5 Year Rinban ops later today.
  • Cash ACGB curve has bull flattened, yields last sit 0.1-2.8bp lower. YM & XM have crept higher and sit +1.5 & +2.5 respectively. Bills trade -1 to +1 tick through the reds. Nothing much on the Australian docket today, outside of the latest round of scheduled ACGB purchases from the RBA.

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