Core FI Biased Lower In Asia

T-Notes stuck to a 0-03+ range in Asia-Pac hours, last -0-10 vs. Friday's settlement, printing at 136-07+. 10s present the weak point on the cash curve after the elongated weekend, trading a little over 3.0bp cheaper on the day. A TU/FV flattener block (14K vs. 10K) provided the highlight on the flow side overnight.

• JGB futures softened during the Tokyo afternoon, last -5, with a soft round of 5-Year JGB supply resulting in some weakness. Cash JGB trade has seen some light underperformance in the belly, with yields ultimately little changed across the curve. Morning trade saw little movement in the space, with broader macro headline flow limited. Comments from BoJ Governor Kuroda reaffirmed a sense of caution and worry re: downside risks to the economy, while the Governor provided no deviation from the Bank's broader view re: ETF purchases. Elsewhere, Finance Minister Aso highlighted that the government needs to monitor JGB yields in case of a sudden jump (likely alluding to the broader reflation theme evident in global markets at present), while noting that it is hard to outline an appropriate level of outstanding national debt.
• Aussie bond futures dealt either side of unchanged, with YM and XM both printing -1.0 on the day at typing. The latest round of RBA communique, the meeting minutes from its February decision, provided no surprises, coming hot on the heels of a run of appearances from Governor Lowe.