Consolidation

It was a rather uneventful session for core FI, which held tight ranges close to their best levels from the previous trading day. Lingering Omicron jitters and the proximity of some major central bank decisions allowed major bond markets to hold gains registered at the start to the week.

• T-Notes wavered within a 0-03 range, last trade flat at 130-27, after topping out at a fresh one-week high of 130-30+ on Monday. Cash U.S. Tsy yields sit 0.4-1.2bp higher across a marginally flatter curve. Eurodollars last seen 0.5-2.0 ticks lower through the reds. Domestic PPI report takes focus in the U.S. today, as we await Wednesday's FOMC announcement.
• JGB futures slipped, albeit only marginally, even as the Nikkei 225 extended losses after the Tokyo lunch break. The contract sits at 152.06, 9 ticks above Monday's settlement. Cash JGB yields trade lower across the curve, with the liquidity enhancement auction covering off-the-run 5- to 15.5-Year JGBs provoking no market reaction.
• Overnight impetus drove early price action in cash ACGBs, with bull flattening evident. Yields last trade 1.8-6.5bp lower across the curve. Aussie bond futures operated in narrow ranges, YM & XM last +6.0 apiece. Bills run unch. to +7 ticks through the reds. The latest round of monthly NAB Business Confidence data was shrugged off.