Core FI Coils In Asia As Familiar Headline Themes Remain In Play

U.S. Tsys have held a tight range, with little to really force the issue for the space. T-Notes have stuck to a 0-03 range, last -0-00+ at 139-20+, while yields sit little changed across the curve. Sino-U.S. tensions (despite some temporary judicial respite for TikTok), as well as Brexit risks and U.S. fiscal/political matters remain front and centre.

• JGB futures faded a touch in the afternoon, last -5, with the early twist steepening of the cash curve extending and swap spreads mostly widening. An uptick in the offer/cover ratio in the latest round of 5-10 Year BoJ Rinban ops may have added light pressure in the Tokyo afternoon.
• Aussie bond futures promptly retraced their blip lower on the pushback in Westpac's RBA easing call from to Nov from Oct. YM trades +0.5, with XM +2.5 at typing as the cash ACGB curve bull flattens vs. settlement, reflecting the moves seen in futures during SYCOM hours. The RBA refrained from ACGB purchases today, which wasn't much of a surprise given current yield levels. Domestically, Victoria eased its social distancing restrictions ahead of schedule, which included lifting Melbourne's curfew.