Core FI Futures Tick Away From Lows

Core FI futures have regained poise, T-Notes have bounced off their session low of 132-08 and last change hands +0-06 at 132-24+. Cash Tsy yields sit lower across the curve, with belly outperforming, albeit cash yields in Japan and Australia are still higher on the back of overnight impetus. Eurodollars trade -1.0 to +1.5 tick through the reds.

• JGB futures faltered to 150.38 early on but have recoiled and last trade at 150.56, 31 ticks below settlement. Cash JGB yields trade higher across the curve, save for 2s ahead of today's 2-Year JGB auction. Some expected the BoJ to conduct an unscheduled round of JGB purchases, which didn't come to fruition in the usual window. As a reminder, the BoJ will publish their Mar Rinban plan after hours. Japanese Tokyo CPI fell roughly in line with exp., retail sales fell slightly less than forecast, while flash industrial output topped projections on a monthly basis. Japanese FinMin Aso reaffirmed the importance of stability in JGB yields.
• In Australia, YM slipped despite the RBA's offer to buy A$3.0bn of ACGB Apr '23 & ACGB Apr'24 in an unscheduled operation to enforce its 3-year yield target. The contract has recovered from lows and last sits -5.0 ticks. XM has crept higher and now deals -10.5 ticks. Cash ACGB curve runs steeper, yields last seen -0.5bp to +8.9bp. Bills trade 2-6 ticks through the reds. The AOFM released a light issuance schedule for next week, with A$1.0bn of ACGB 21 Jun '31 to be auctioned next Friday.