Core FI Advance As J&J Pauses Covid-19 Vax Trial, Cash Tsys Reopen

A STAT report noting that J&J have paused their Covid-19 vaccine study, later confirmed by the company, has generated some light risk-off flows, lending support to core FI. In the U.S., cash Tsy space re-opened after the elongated weekend, with some bull flattening creeping in. T-Notes last sit +0-02 at 138-31 and Eurodollar futures trade unch. to +1.0 tick through the reds.

• JGB futures topped out at 152.02 before ebbing off highs and last trades at 151.99, 3 ticks above settlement. Cash JGB yields sit lower across a slightly steeper curve, with the 3-5 sector outperforming. The latest 15.5-39 Year JGB liquidity enhancement auction headlines locally today.
• In Australia, YM unch. & XM +1.0. Bull flattening evident in cash space, with yield sitting 0.1-1.7bp lower. Bills trade unch. to -1 tick through the reds. The AOFM auctioned A$150mn worth of 0.75% 21 Nov '27 I/L Bond, while souring Sino-Australian relations have taken focus on the news front.