Core FI Heavy, Futures Touch Session Lows

T-Notes trade -0-01+ at the session low of 131-04+ after a tight re-open, with focus on familiar U.S. fiscal matters. The belly of the cash yield curve underperforms as we type, with yields broadly a touch higher. Eurodollar futures last seen unch. to +0.5 tick through the reds. Little to write home on the broader headline flow, which has lacked any notable catalysts.

• JGB futures blipped higher after the re-open and printed a session high of 151.30, before erasing early gains. The contract sits at 151.21, 2 ticks below last settlement. Cash JGB yields generally sit lower, with 40s outperforming. Japanese industrial output shrank more than forecast, per preliminary Feb data. The BoJ will conduct 3-5 & 10-25+ Year JGB Rinban ops, before publishing its monthly Rinban plan after hours.
• The AOFM tapped A$2.0bn of ACGB 1.0% 21 Nov '31 in what wasn't the firmest auction in pricing terms, albeit the bid/cover ratio was higher in size-adjusted terms. YM trades -1.0 & XM -1.5 (at session low), with ACGB yields mostly higher across a slightly steepened curve. Bills trade unch. to -1 ticks through the reds. The RBA offered to buy A$1.0bn of semi-gov't bonds with maturities of Mar '25 - May '32, excluding TASCORP Jan '32, NSWTC Mar '31, TCV Nov '26, TCV Nov '27, TCV Oct '28, TCV Oct '29, TCV Sep '31 & WATC Oct '26. Australian building permits proved considerably stronger than forecast in Feb.