Core FI Buoyant in Asia

T-Notes have popped higher and last trade +0-05 at 137-24+, off the session high at 137-25+, as e-minis operate shy of neutral levels. Cash Tsy curve has moved lower, as activity resumed after the Vets Day, with a degree of flattening creeping in & the 7-10 sector outperforming. Eurodollar futures trade unch. to +1.0 tick through the reds.

• JGB futures have crept higher and last change hands at 151.97, through overnight highs & 13 ticks above last settlement. Cash JGB yields have moved lower. In local data, PPI was marginally worse than forecast, as were core machine orders (on M/M basis, the Y/Y print was a tad less bad than exp.). Looking ahead, the MoF will auction 5-Year JGBs later today.
• In Australia, YM +1.0 & XM +7.0. XM inched lower after the announcement of status quo purchases in longer dated RBA QE amid long positioning, but has recouped that downtick. Cash ACGB curve runs flatter, sits lower, with yields last seen 0.1-7.6bp richer. Bills trade unch. to +1 tick through the reds.