Core FI A Touch Firmer In Asia

A lack of meaningful headlines and nothing in the way of notable broader market flow has allowed T-Notes to trade within the confines of a 0-02 range overnight, with the contract last dealing +0-01 at 132-04+. Cash Tsys print unchanged to 1.0bp richer across the curve, with some light bull flattening evident. We should highlight that the NY-Asia crossover saw GOP Senator Capito stress that the GOP is not going to present a further counter-offer to President Biden's fiscal spending proposals ahead of another meeting on Tuesday.

• JGB futures held a narrow range during the Tokyo morning, dealing either side of unchanged, before nudging a little higher in the afternoon to last deal +6. The major cash JGB benchmarks mostly trade 0.5bp to 1.0bp richer across the curve, although the very extremes of the curve (the wings) are little changed. A light bid crept into the space despite a less than inspiring round of 30-Year supply all told, as there wasn't any signs of deterioration vs. last month's 30-Year JGB auction. The low price topped broader dealer estimates. The tail width was relatively steady when compared to the previous round of 30-Year supply. The cover ratio nudged higher when compared to last month's offering but remains somewhat low (a reminder that last month's cover represented a multi-year low for 30-Year JGB supply). Elsewhere, domestic wage & final Q1 GDP data comfortably topped expectations this morning.
• Aussie bond futures have held to very narrow ranges thus far, with YM +0.5 at typing and XM +1.0. Cash ACGBs have twist flattened, with 30s running 3.0bp richer on the day. The latest NAB business survey saw a modest downtick in the confidence component, while conditions moved to a fresh record high. The details of the release revealed that "the survey continues to point to strong outcomes in the business sector, with business conditions resetting their record high for the second month in a row and forward orders also holding at a record level. The employment, profitability and trading sub-components all also reset last month's highs - with trading conditions now at exceptional levels." AOFM CEO Nicholl spoke at a private event, with BBG noting that the AOFM will be paring back the information it provides to the market on issuance plans, in order to gain more flexibility as the economy recovers from the pandemic.