Calm Start, JGBs Firm

Headline flow has been light in early Asia-Pac hours, with Israel and Hamas continuing to trade rocket fire. T-Notes have stuck to a 0-02+ range and last trade +0-01+ at 132-07+. Cash U.S. Tsy yields sit marginally above neutral levels. Eurodollars last trade unch. to +0.5 tick through the reds. Later in the day, focus in the U.S. turns to retail sales, industrial output, U. of Mich. Survey & comments form Fed's Kaplan.

• JGB futures re-opened on a firmer footing and last trade at 151.32, 7 ticks above Thursday's settlement, even as the Nikkei 225 has rebounded. Cash JGB yields are broadly lower, with 40s outperforming at the margin. The BoJ will buy 1-10 Year JGBs as part of its Rinban ops today.
• ACGB curve has twist flattened a tad, yields last seen +0.4bp to -1.7bp. 10-Year yield has fallen the most, last sits at 1.788%. YM trades -0.5, with XM +2.0 at typing. Bills trade unch. to -1 tick through the reds. The AOFM will auction A$1.0bn of ACGB 4.23% 21 Apr '26 at the top of the hour (the RBA has bought A$8bn of the issue), before announcing the issuance plan for next week. Worth noting that reinvestment flows may provide a tailwind for ACGB space today, ahead of Saturday's redemption of ACGB May '21, with about A$26bn outstanding.