Core FI Firm In Holiday Thinned Asia Session

Core FI remains better bid in early Asia-Pac trade although there is little in the way of headline flow to support the move.

• T-Notes +0-03+ at 135-14, with some looking to month-end extensions that are a shade above average. Cash Tsys are closed until London hours owing to the previously flagged Japanese holiday.
• We have already highlighted that the early bid in the longer end of the ACGB curve could be a result of cross-market plays vs. the U.S., while the bid in the shorter maturity ACGBs/red bill contracts may suggest that participants believe that the recent move lower has gone too far, too fast, meaning that some may be establishing fresh longs after the recent flush out. YM +1.5, XM +2.5, with the overnight steepening now more than unwound.