Core FI Mixed In Asia, Tsys Flatten A Touch, Aussie Curve Steepens

T-Notes continue to hold to the 0-04 range that was established relatively early in the overnight session, with macro headline flow light in Asia-Pac hours, outside of the comments from the U.S. security service which pointed to Russian & Iranian efforts to interfere in the upcoming U.S. election. The DC fiscal impasse also continues to bubble in the background, with talks set to continue on Thursday. Contract last -0-01 at 138-17+, with the curve bull flattening on the aforementioned election intervention story, as cash Tsys sit unchanged to 1.9bp richer across the curve. Eurodollar futures are virtually unchanged through the reds, with the only real flow of note coming in the form of upside exposure via EDZ1 100.00 calls.

• JGB futures have chopped around within a narrow range, as both the JGB and swap curves steepen, with some weakness in the respective super-long ends in the wake of the steepening seen on the U.S. Tsy curve on Wednesday. There was little of note to drive matters on the domestic front.
• The Aussie bond space has also drifted steeper, with e-minis off lows. YM -0.5, with XM -3.5. Once again, weaker longs may be folding, amplifying any modest pressure in the space as XM trades through yesterday's lows. Bills unchanged to -1 through the reds.