Core FI Biased A Little Lower In Asia

Some pressure in the Aussie bond space and Chinese President Xi's focus on a multilateral global environment ultimately pressured core global FI markets during Asia-Pac hours, although there was little in the way of outright fresh news apparent re: either of those particular matters, limiting the scope of and participation in the moves.

• T-Notes -0-01+ at 132-06 at typing, 0-02 off the lows and within the confines of a 0-05 range since the re-open, operating on modest volume <75K. Yields are virtually unchanged across the cash Tsy curve, with the two aforementioned matters providing the focal points during Asia-Pac hours.
• JGB futures drifted lower in the Tokyo afternoon, last -6, with the cash curve seeing some light bull flattening vs. Monday's close. A solid enough, albeit unimpressive, round of 20-Year JGB supply saw a fairly steady cover ratio, narrower tail vs. prev. auction and a low price that comfortably topped broader dealer exp. (proxied by the BBG dealer survey). The super-long end has firmed a little in the wake of the auction, with the matters flagged in our auction preview (limited relative value appeal, attractive offshore bond yields and a lack of impending BoJ purchases covering the zone) limiting overall demand. Super-long JGBs were a touch firmer in the wake of the auction after outperforming during the Tokyo morning.
• The RBA's April meeting minutes contained little in the way of fresh information, which left us pining over the release for an explanation re: the pressure that crept into the Aussie bond space. It may just be as simple as the fact that there was no real expansion on the RBA's thought process surrounding the potential extension of the 3-Year yield targeting scheme to cover ACGB Nov '24, in addition to a lack of overt worry and another nod to the wind down of the TFF come the end of June. Hedging surrounding the pricing of TCV's A$1.6bn round of Sep '33 issuance was another likely contributor. YM -2.0, XM -6.0.