Coiling

{US}{AU}{JN} BOND SUMMARY: Tsy yields sit 0.2-0.5bp cheaper across the curve in cash trade as participants sit back and assess Monday's market moves and news flow, with the latest round of rhetoric from President Trump offering up little of note. T-Notes in a 0-03+ range, last +0-01+ at 139-31+.

• JGB futures last +9, rallying to best levels in the wake of the latest round of 10-Year supply, which was fairly bland, but represented a smooth absorption. 7-10 Year sector outperformance was seen in the afternoon, as the sector rallied out of auction. Tokyo CPI metrics were a touch stronger than expected across the board, but the three major measures were still nowhere near challenging 1.0% in Y/Y terms.
• Aussie bonds coiled ahead of the latest RBA decision. YM unchanged, XM +1.0. There was little reaction to the latest round of local data, which saw a marginal beat for headline retail sales, but the Q2 ex-inflation measure missed exp. marginally. Trade surplus widened vs. May (which was revised narrower), but missed exp. Still the headline surplus is very healthy. Both exports and imports were a touch softer than expected.