Core FI Biased A Touch Lower

U.S. Tsys came under modest pressure in post-FOMC Asia-Pac trade, with focus on the continued positive musings around the fiscal situation in DC evident, although there was little in the way of solid progress on that front. T-Notes stuck to a 0-05 range, with the contract last -0-00+ at 137-28, while the cash curve is back from session steeps, as Tsys sit unchanged to 0.5bp cheaper across the curve. Downside TY block plays drove matters on the flow side in Asia.

• JGB futures sit 7 ticks below settlement levels but haven't challenged the overnight low. Cash JGBs have generally cheapened across the curve, but still sit within 1.0bp of closing levels, with participants keeping an eye on matters surrounding JGB issuance plans.
• Aussie bonds traded lower in the wake of a firmer than expected domestic labour market report, with the state of Victoria driving jobs growth post-lockdown. YM & XM both sit 2.5 ticks below settlement levels as we move towards the close.