Core FI Bid, ACGBs Look Past Jobs Data

T-Notes picked up a bid, as yesterday's strong 10-Year Tsy auction & continued deadlock in U.S. fiscal negotiations likely provided the initial impetus, while the yellow metal's rally has helped the contract extend gains. Renewed selling pressure hit e-minis, despite little in the way of headline catalysts, prompting U.S. equity index futures to turn red and lending further support to Tsys. T-Notes trade +0-05 at 139-11 as we type. Cash space sees some bull flattening, with yields last seen 0.8-3.0bp lower. Eurodollar futures sit unch. to +1.5 tick through the reds.

• JGB futures have been well bid, rallying above overnight highs; the contract last sits at 151.90, +10 ticks vs. settlement, having eased off highs after the BoJ's 1-10 Year Rinban ops (all purchase sizes left unch.). Cash JGB yields mostly sit lower, save for 30s & 40s as the super-long end underperforms & curve runs steeper.
• In Australia, YM unch. & XM +2.0, with bull flattening creeping into the cash curve. Bills last trade -1 to +1 tick through the reds. The space has seemingly acted on broader dynamics outlined earlier, rather than local factors. Above-forecast Australian labour market report came and went, so did the RBA's YCC announcement, which saw the bank offer to buy A$2.0bn worth of ACGBs (eligible lines: Apr '23 & Apr '24).