Core FI Marginally Softer, Equity Markets Buoyant

T-Notes re-opened slightly lower but have wavered within a narrow range since, as news flow has remained muted. The contract sits -0-01 at 136-21 as we type, with e-minis holding above neutral levels (S&P 500 futures hit best levels on record). Cash Tsy curve has bear steepened, yields trade 0.2-1.0bp cheaper. Eurodollar futures trade unch. to -0.5 tick through the reds.

• JGB futures are rangebound, last trade at 151.56, 8 ticks shy of settlement. Cash JGB yields trade marginally mixed. Stock market dynamics have drawn some attention, with both Topix & Nikkei 225 marking fresh multi-decade highs. Chatter surrounding potential for the early lifting of Japan's Covid-19 state of emergency has dominated local news flow. Focus moves to Eco Watchers Survey & the MoF's auction for 10-Year JGBi's.
• In Oz, YM trades -0.5 & XM trades -5.5. Cash curve runs steeper, with yields last seen -0.5bp to +5.3bp. Bills trade unch. to -1 tick through the reds. The AOFM auctioned A$500mn of ACGB 4.50% 21 Apr '33, while the RBA offered to buy A$2.0bn of ACGBs with maturities of Nov '24 - May '28. Worth noting that across the ditch, New Zealand observes a public holiday.