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Core FI Futures Rangebound, Cling Onto Monday's Gains

BONDS

Little to write home about latest headline flow, with the absence of fresh catalysts keeping core FI within tight ranges. Numerous monetary policy decisions and any developments on the Omicron front will be eyed.

  • T-Notes trade flat at 130-27, while cash Tsy yields sit 0.2-0.8bp lower across the curve. Eurodollar futures trade up to 1.5 tick lower through the reds. Domestic PPI report headlines the U.S. docket on Tuesday.
  • JGB futures last seen at 152.08, 11 ticks above previous settlement. Cash JGB yields generally sit a touch lower across the curve. Focus turns to an enhanced liquidity auction for off-the-run 5-15.5 Year JGBs as well as final industrial output data.
  • Cash ACGBs played catch-up with overnight Tsy impetus, they last trade 4.5-6.5bp lower across a flattened curve. Futures have been rangebound, YM & XM last +5.8 apiece. Bills trade -1 to +8 ticks through the reds.

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