Core FI Marginally Softer In Asia

Very light pressure crept back into the Tsy space as we moved through Asia-Pac trade, although T-Notes stuck to the confines of the range established in early Asia-Pac daeling, last -0-04+ at 132-15. Cash Tsys now running unchanged to 1.0bp cheaper across the curve. Little in the way of overt headline flow was apparent, with the USD seeing a light uptick. Headlines re: the disbursement of U.S. stimulus checks starting to hit as soon as the weekend were re-aired, this time via Tsy Secretary Yellen, but that was already a known. Eurodollar futures sit unchanged to 1.5 ticks lower through the reds, with overnight flow headlined by ~30K of sales in EDU2

• The wings of the cash JGB curve firmed during the Tokyo morning, while the 3- to 10-Year zone of the curve saw some modest cheapening. It was once again the long end of the curve that outperformed, with super-long paper firming by ~3.0bp vs. yesterday's closing levels during morning trade, before unwinding most of the bid during the early part of the Tokyo afternoon as local equity markets firmed further. The belly of the curve still lags on the day in cash trade, with JGB futures (M1) trading 7 ticks lower on the day. The latest round of BoJ Rinban ops saw the respective purchase sizes of each bucket left at unchanged levels, while the offer to cover ratios revealed little in the way of notable selling pressure ahead of next week's BoJ decision.
• The Aussie bond space looked through the weekly AOFM issuance announcement, with the weekly ACGB issuance task upsized to a more normal A$2.0bn level after 2 weeks at A$1.0bn. The AOFM is seemingly comfortable enough with the calming of bond market volatility that has been witnessed over the last week or so. Still, the AOFM held off from the syndication of the new ACGB Nov '32, which could come in the coming weeks if the bond market continues to act in an orderly manner. YMM1 unchanged, XMM1 -4.6.