Core FI Look For Fresh Catalysts As Japan Returns From Holidays

T-Notes have held a tight range and last trade -0-00+ at 139-18, as
participants await fresh catalysts. Yields are marginally mixed across the curve
in cash trade. Simmering Sino-U.S. tensions & U.S. fiscal fractures
inspired some caution early on, but USD weakness has helped e-minis
creep higher. Eurodollars last seen unch. to +0.5 tick through the reds.

• JGB futures have ticked off a session low of 152.30 and last trade at 152.34,
  4 ticks below settlement, as Japan returns after a long weekend. Some
  very marginal twist steepening seen in cash trade. Final Japanese capex numbers
  & company sales for Q1 were revised lower, with company profits
  revised to show a slightly smaller contraction. No change to purchase
  size during today's 10-25 Year BoJ Rinban ops.
• In Australia, YM -0.5 & XM -3.5, with yield curve running steeper in cash
  trade. Bills sit unch. to -1 tick through the reds. Nothing of note in
  comments from RBA's Kent, who reiterated the central bank's familiar message.
  Victoria's record daily Covid-19 case count provided some interest.