Core FI Grind Higher

T-Notes have caught a bid over the last hour or so and last trade +0-05 at 132-03+, just below session highs after punching through Monday's best levels. Cash Tsy curve runs flatter, with yields 0.2-1.8bp lower. Eurodollar futures trade -0.5 to +0.5 tick through the reds. There are no tier 1 risk events slated for the remainder of the Asia-Pac session, which turns focus to market/headline flows.

• JGB futures popped higher and last sit at 151.15, 8 ticks better off vs. settlement. Cash curve has bull flattened a tad. Comments from the Japanese MOF have grabbed attention, as off'ls revealed that there is Y3.8tn left in Japan's Covid-19 reserve fund, while FinMin Aso said that the cabinet has approved cash handouts for low income families. Aso added that the decision on U.S. beef imports has not been taken yet, after local media flagged an imminent tariff hike. Coming up in Japan later today we have final industrial output data, an enhanced liquidity auction for JGBs with 5-15.5 years until maturity and comments from BoJ Gov Kuroda.
• Aussie bond futures have crept higher. YM trades +2.5 & XM +9.4, both testing session highs after the release of the minutes from the RBA's latest MonPol meeting, which saw the Reserve Bank point to their familiar dovish leanings. Cash ACGB curve runs flatter, with yields sitting +0.2bp to -9.3bp as we type. Bills trade unch. to +2 ticks through the reds. On the data front, Australia's quarterly house price index rose faster than expected, both on a monthly and an annual basis.