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Core FI Inch Higher In Tight Early Trade

BOND SUMMARY

The initial downtick in T-Notes was short-lived and the contract has resumed gains, with e-minis ebbing lower. At typing, T-Notes trade +0-02+ at 138-12, through yesterday's highs. Cash Tsy yields are little changed across the curve. Eurodollar futures sit unch. to -0.5 tick through the reds.

  • JGB futures have round tripped from a session high at 152.18 and last trade at 152.16, 9 ticks above last settlement. Cash JGB yields trade lower across the curve. Japanese trade surplus unexpectedly widened in Oct. Focus now turns to 20-Year JGB supply.
  • In Australia, YM +1.0 & XM +5.5 as we type. Cash ACGB curve has undergone bull flattening, with yields last seen 0.3-5.8bp lower. Bills trade unch. to -1 tick through the reds. Australian wage price growth was marginally slower than expected, while the latest speech from RBA Gov Lowe offered little fresh insight.

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