Core FI Mixed In Asia

10s led the way lower in U.S. cash Tsy trade after the elongated weekend, and last print ~2.5bp cheaper vs. Friday's closing levels, with pockets of selling in TYU1 observed overnight. T-Notes last -0-06 at 131-24, 0-02 off lows. Headline flow remains light, with no notable surprises in today's USD/CNY mid-point fixing. There was perhaps an element of the latest uptick in oil spilling over into Tsys, as Brent futures topped $70.00

• A sedate session for JGBs, with the pressure in the U.S. Tsy space seemingly applying some modest weight here, leaving cash JGBs little changed to ~0.5bp cheaper across the curve, while futures print 1 tick below yesterday's settlement level. There was little to note on the domestic front, outside of softer than expected Q1 CapEx data re: Japanese corporates & continued chatter surrounding the viability of the Tokyo Olympics.
• Aussie bonds were underpinned ahead of today's RBA decision, with local data generally on the firmer side of expectations, while there was another uptick in cases within the Melbourne COVID cluster. YM +0.5, XM +1.5, with 10s seeing some marginal outperformance on the cash ACGB curve. 3-Year EFPs are threatening to push above 16bp. There was also the potential for some trans-Tasman impetus, with RBNZ chief economist Ha telling Interest NZ that "there might not be an abrupt end to the RBNZ's bond buying when its Large-Scale Asset Purchase (LSAP) programme ends in June 2022." The last couple of days have seen various RBNZ policymakers look to re-assert the notion of optionality into the broader narrative after markets deemed last week's decision (and the OCR track within the MPS) to be hawkish. A reminder that there are no real expectations for anything in the way of the dissemination of fresh, meaningful information at today's RBA decision (see our full preview for more detail on that matter).