Core FI Coils In Asia

A lack of meaningful macro headline flow has made for a tight Asia-Pac session when it comes to core FI markets.

• TYH2 looked through Wednesday’s lows as Asia-Pac participants reacted to Wednesday’s hawkish Fedspeak, while Harker (’23 voter) & Daly (’24 voter) joined in during Asia hours, pointing to support for a March rate hike. TYH2 bounced from worst levels, operating at the top of the narrow-0-07 range observed ahead of London hours, last -0-04 at 128-14+. Cash Tsys sit ~1bp richer across the cruve. PPI and weekly jobless claims data headline the NY economic docket on Thursday. Elsewhere, Fedspeak will come from Brainard, Barkin & Evans, while Tsy supply comes in the form of 30-Year paper.
• The lack of domestic headline flow/overt macro market drivers left the cross-market impact from U.S. Tsys in the driving seat during Tokyo dealing. JGB futures were +1 at the bell, unwinding the early weakness, while operating within the confines of the recently observed range. Cash JGBs are little changed to 0.5bp richer across the curve. There wasn’t anything in the way of clear concession built ahead of tomorrow’s 20-Year JGB auction. Elsehwere on the issuance front, Hungary mandated for a potential round of multi-tranche samurai paper, which would include green bonds.
• Aussie bonds stuck to a narrow range given the lack of macro drivers, with YM -1.5 & XM -1.0 come the close.