Core FI Catch Bid In Partial Reversal Of Friday's Moves

It has been a fairly quiet start to the week, headline-wise, with the Asia-Pac region awaiting China's monthly economic activity indicators, due at the top of the hour. T-Notes (citing M1 contract) have moved away from Friday's lows and last trade +0-04+ at 131-29+, hitting fresh session highs. Cash Tsy yields trade unch. to -0.9bp across the curve, with belly outperforming at the margin. Eurodollar futures last seen unch. to -0.5 tick through the reds.

• JGB futures have rallied from the off, taking out Friday's best levels. The contract now sits at 151.12, 13 ticks above last settlement, testing session highs. Cash JGB yields trade lower across a flatter curve. On the data front, Japanese core machine orders posted the first monthly drop in four months, but it was shallower than expected.
• Aussie bond futures have extended gains since the previous bullet and YM now sits -0.6, with XM trading -7.3, both at/near session highs. Cash ACGB yields are off initial steeps, last -0.8bp to +7.2bp. Bills still trade 1-4 ticks through the reds. As a reminder, the RBA offered to buy A$2.0bn of ACGBs as part of their bond-purchase programme. The address from RBA Gov Lowe was pretty uninspiring, with the Governor largely sticking to his familiar lines.