Core FI Inch Higher As Sentiment Wanes Again

Core FI corrected Wednesday's sell-off as broader risk sentiment faltered on the back of stock market dynamics. A spillover from a decent session at Wall Street allowed regional equity benchmarks to open higher, but they ebbed off highs, while e-minis turned red suggesting that Wednesday's risk-on impetus has run out of steam. Headline flow was light and the data calendar featured no tier-1 releases.

• T-Notes ground higher and last trade +0-03 at 139-12+, just shy of session highs. Cash curve bull flattened a tad, with the long end outperforming ahead of 30-Year Tsy supply. Eurodollar futures trade unch. to +0.5 tick through the reds. Coming up in the U.S. today are initial jobless claims & PPI data, while the fiscal vote in the Senate will largely be a symbolic event, as the GOP Senators do not command enough seats to push their bill through.
• JGB futures rallied to 151/98 before trimming gains into the lunch break. The contract ticked higher thereafter, albeit failed to re-test session highs, and last sits at 151.95, -2 ticks vs. settlement. Cash JGB yields sit lower across the curve, with 2s outperforming. Better than expected Japanese core machine orders were shrugged off. The MoF auctioned 20-Year JGBs, with the low price matching BBG estimate.
• Aussie bond futures crept higher; YM virtually unch. & XM -3.5 as we type. Cash ACGB curve steepened, tracking Wednesday's moves in Tsys. Yields last seen -1.5bp to +5.3bp across the curve. Bills are unch. to -1 tick through the reds. Australian consumer inflation expectations eased slightly, per the latest update. Elsewhere, the RBA refrained from ACGB purchases today.