Core FI Inch Higher, Looking Past Firmer E-Minis

T-Notes trade +0-00+ at 138-04 (new session high), after holding onto a tight, 0-03+ range despite the early uptick in e-minis and broader risk-on feel, observed as participants have focused on the positives at the start to the week. Cash Tsy yields are unch. to marginally lower across the curve. Eurodollar futures run unch. to +0.5 tick through the reds.

• JGB futures have picked up a bid, even as local preliminary Q3 GDP figures topped expectations (albeit capex & consumption spending disappointed). The contract last trades at 152.13, 3 ticks above last settlement and testing session highs. Cash JGB yields sit marginally shy of neutral levels. Focus turns to final industrial output, comments from BoJ's Masai & a liquidity enhancement auction for off-the-run JGBs with 5-15.5 years until maturity.
• In Australian, YM trades unch. & XM is testing session highs and sits -0.5, having recouped an earlier downtick. Cash ACGB yields trade marginally mixed, sitting -0.6bp to +0.7bp across the curve. Bills trade unch. to -1 tick through the reds. The RBA offered to buy A$1.5bn worth of ACGB Apr '24 to enforce its 3-Year yield target & A$2.0bn worth of ACGBs with maturities of Nov '24 - May '28. RBA Gov Lowe will speak on "Covid, Our Changing Economy and Monetary Policy" this evening.