Core FI A Touch Better Bid In Asia

Much of the weekend's headline flow focused on goings on in Afghanistan, with the U.S. conducting a surgical strike against some of the plotters of the recent attack on Kabul airport, in addition to moving to foil another terror act in the city. Elsewhere, RTRS sources pointed to an intercepted missile attack, which fired on Kabul airport early on Monday morning.

• Incremental support has spilled over from Friday's post-Powell dealing into Asia-Pac trade, with T-Notes holding to a narrow 0-03 range thus far, last +0-01 at 133-29+ after a couple of tests of Friday's late NY high, but there was nothing in the way of a notable break, despite brief and shallow showings above. Cash Tsys trade little changed to ~0.5bp richer across the curve. There hasn't been much in the way of notable headlines/market flow observed thus far. As a reminder, TYU1 will see first notice on Tuesday.
• The cash JGB space has seen firming of 0.5-1.0bp across the curve, while futures initially showed higher before tapering off into the lunch break, last +8 on the day. The details of the latest round of BoJ Rinban ops revealed the following offer/cover ratios: 3- to 5-Year: 2.45x (prev. 3.02X), 5- to 10-Year: 2.93x (prev. 2.66X).
• There was no reaction from Aussie bonds to the latest round of Australian Q2 GDP partials, which saw a much slower than expected uptick in inventories during Q2, alongside a much larger than expected jump in corporate operating profits. YM +2.5, XM +1.5 at typing. Elsewhere, NSW lodged another record daily COVID case count (1,290), while there was a brisk start to the week for A$-denominated corporate issuance.