Core FI Coils Ahead Of Jackson Hole

It was a relatively lethargic Asia-Pac session for core FI markets, with a distinct lack of meaningful headline flow evident ahead of the virtual Jackson Hole event.

• T-Notes last dealing -0-01 at 132-18, sticking to a 0-04 range thus far. Cash Tsys deal little changed to 1.0bp richer across the curve. Broader flow has been subdued once you net off the impact of rolls in the futures space. Upside exposure has provided the only real highlight on the flow side, with a 10K screen buyer of TYV1 135.50 calls seen. Fed Chair Powell's Friday address headlines the aforementioned Jackson Hole event. NY hours will also see the release of July's PCE data suite and the final UoM sentiment reading for August. A raft of Fedspeak surrounding Jackson Hole fills out the docket.
• Fairly sideways Tokyo trade for JGB futures, with the contract last -10 ticks after a very modest uptick at the re-open, which faded. Benchmark cash JGB yields are virtually unchanged across the curve. The only real local headlines of note saw Japanese Finance Minister Aso play down an "urgent need" to raise funds via a supplementary budget.
• Aussie bond futures continue to hold to tight ranges, with YM -1.0 and XM -1.5 at typing. There were no surprises in the release of the AOFM's weekly issuance slate, meanwhile the latest round of ACGB Nov '24 supply saw a steady cover ratio as the weighted average yield printed 0.67bp through prevailing mids at the time of supply (per Yieldbroker). Elsewhere, the daily COVID case count out of NSW moderated back below 1.0K, pulling back from yesterday's all-time highs. On the data front July's retail sales print was marginally softer than expected. Still, these events haven't impacted the space.