Central banks fired another salvo......>

BOND SUMMARY: Central banks fired another salvo against the coronavirus crisis,

for the benefit of core FI. The FOMC deployed a cocktail of measures, incl. a

100bp rate cut & pledge to buy at least $700bn of gov't securities. Worry re:

Covid-19 remained evident, likely supporting core FI space. Worth re-flagging

that on Sunday six major central banks promised to coordinate in securing global

USD liquidity. T-Notes last +2-11+ at 138-20+. Yields 22.2-31.9bp lower in cash

trade, belly outperforms. Eurodollars +9.5-18.5 ticks thru reds.

- After Fed action, the BoJ called an emergency meeting (underway as we type) in

lieu of the one slated for later this week. JGB futs are nearing session highs.

The contract sits at 153.27, 1 tick shy of settlement. Cash yields are lower

across the curve. The MoF sold Y599.5bn of 5-15.5 Yr JGBs in a liquidity

enhancement auction, drawing a bid/cover ratio of 2.978x (prev. 2.665x).

- In Oz, YMM0 +9.5 & XMM0 +12.75. Curve is steeper, yields lower. Aussie bond

futs jumped as RBA said it'll unveil new policy measures Thurs & declared

readiness to buy gov't bonds in the secondary market. The RBA earlier said it

will boost liquidity via short-term repo ops & the RBNZ cut the OCR by 75bp.