Core FI Biased Lower As Risk Appetite Picks Up

Improved risk appetite, filtering through into the equity markets, has pressured core FI, as participants anticipated that House Democrats & the White House will return to their fiscal talks. They also noted the easing risk of any post-election political disruption in the U.S., following comments from GOP politicians stressing the importance of peaceful presidential succession. T-Notes have edged lower and last trade -0-03 at 139-15+. Cash Tsy cure has steepened a tad, with yields unch. to +1.0bp. Eurodollar futures trade unch. to -0.5 tick through the reds. Focus in the U.S. turns to flash durable goods orders, comments from Fed's Williams & George. There is no Tsy supply coming up today.

• JGB futures have slipped and last trade at 152.15, unch. vs. settlement. Cash JGB futures are marginally mixed for the most part, with 2s outperforming & 40s underperforming (in the wake of a disappointing 40-Year JGB auction yesterday). The MoF will sell 3-Month Bills later today.
• In Australia, YM -1.0 & XM -1.5 as we type. Cash ACGB curve has bear steepened, with yields sitting 0.6-1.2bp higher. Bills are unch. to -1 tick through the reds. Australian trade surplus shrank slightly, according to preliminary data for August, while both imports and exports fell. Eyes are on the AOFM's weekly issuance schedule, due at the top of the hour.