Core FI Little Changed Ahead Of NFPs, JGBs Give Back O'night Gains

T-Notes stuck to a 0-02+ range in Asia, last +0-02 at 132-10+, while the major cash Tsy benchmarks print little changed to 1.0bp cheaper, with the curve seeing some light bear flattening after Thursday's late twist flattening. Headline and market flow was light overnight, in what was a typical pre-NFP, pre-Independence Day weekend Asia-Pac session.

• JGB futures gradually gave back their overnight gains during the Tokyo morning, and last trade +3 on the day. The major cash JGB benchmarks trade little changed to ~1.5bp richer, with some light underperformance for the front end of the curve, while the belly was perhaps limited by the previously noted move in futures. There were steady and lower bid/cover ratios in the 1- to 3- and 10- to 25-Year BoJ Rinban buckets, even with the purchase sizes of the buckets being trimmed by Y25bn and Y50bn respectively from this round of Rinban operations going forwards (which was announced in the Jul-Sep Rinban plan).
• A sedate session for the Aussie bond space, outside of the previously discussed early tick higher in YM (likely linked to some pre-RBA positioning adjustment, as evidenced by the movement in the ACGB Apr '24/Nov '24 yield spread), with that contract now +2.5 on the day, while XM prints +4.5. A drab AOFM issuance outline for the first half of the current FY, with the AOFM failing to introduce a new conventional ACGB line, as well as the proximity to the U.S. NFP report and next week's RBA decision, has left the space to operate in narrow ranges.