Core FI Edge Lower With U.S. Presidential Debate In Focus

T-Notes have inched lower during a fairly quiet early part of the Asia-Pac session. The contract trades -0-04 at 139-21, hitting session lows after holding a 0-03 range thus far. Cash Tsy curve runs marginally steeper, yields sit 0.2-1.4bp higher. Eurodollars last seen +0.5 to -0.5 tick through the reds. All eyes are on the first U.S. presidential debate of 2020, which has just kicked off with little to shock in the opening salvos from both candidates.

• JGB futures have lost altitude and last trade at 152.09, 2 ticks shy of settlement. Cash JGB yields are marginally mixed, for the most part, with 2s comfortably outperforming. Japan released flash industrial output and retail sales data for the month of August. Both registered losses in Y/Y terms, but rose more than exp. on a M/M basis. The BoJ left the size of its 3-5 Year JGB purchases unch. today.
• Aussie bond futures have edged lower, YM -1.5 & XM -3.0 at typing. Cash ACGB yields trade 0.5-2.6bp higher, curve runs steeper. Bills sit unch. to -2 ticks through the reds. The AOFM auctioned A$2.0bn worth of ACGB 21 Dec '30 earlier today. On the data front, Australian private sector credit & building approvals are due at the bottom of the hour. Chinese PMI data also provides interest. Oficial readings improved slightly more than exp., while Caixin M'fing gauge is due within 25 minutes or so.