Core FI Firm Up, Aussie Bonds Catch Bid After AOFM Counters Syndication Speculation

T-Notes caught a light bid early on, rising past Thursday highs, and last trade +0-02 at 136-27+ after topping out just above there. Cash curve runs flatter as yields trade unch. to 1.2bp richer. Eurodollar futures last seen -0.5 to +0.5 tick through the reds. Headline flow has been relatively thin, with focus on today's NFP report.

• JGB futures have crept higher and change hands at 151.71, 4 ticks above settlement. Cash JGB yields trade lower across the curve, with modest flattening creeping in. Household spending declined in December, but not as much as expected. Elsewhere, the BoJ left the sizes of 5-25 Year JGB purchases unchanged and focus now moves to an address from BoJ Gov Kuroda & MoF auction for 3-Month Bills.
• Aussie YM trades unch. & XM operates +3.5, while cash ACGB curve has bull flattened (yields last 0.1-4.0bp lower). The space got a boost after the AOFM released its weekly issuance schedule, falsifying earlier speculation re: potential syndication of a new 2032 bond next week. Elsewhere, retail sales rose faster than expected in Q4, but the final monthly print for Dec was virtually unchanged vs. the flash reading. Bills trade unch. to -1 tick through the reds. Nothing to rock the boat in the latest SoMP released by the RBA.