Core FI Off Worst Levels

T-Notes last +0-01+ at 131-26, just shy of Asia highs (holding to a 0-06 range since the re-open, working away from late Friday lows on limited volume of ~88K), the cash curve has bull flattened, with 30s sitting ~2.5bp richer on the day. Continued focus on the knock-on impact of Friday's block sale frenzy in the equity space & talk of continued potential flow on that front (see earlier bullets for more details on that matter) provided modest support for core FI early this week, although there has been little in the way of broader market spill over, even as banks start to outline potential losses (which were seemingly driven by one, or maybe two, funds). A downtick for crude oil on the back of the refloating of the well-documented stranded ship in the Suez Canal provided another source of support for core global FI as we moved through overnight trade. Elsewhere, a 4,600 block buyer of FVM1 was seen ahead of European hours.

• JGB futures -5 vs. Friday's settlement after briefly unwinding overnight losses during the Tokyo morning. Cash JGBs were marginally mixed out to 7-Years, firming further out, with 30s leading the way, richening by ~2.5bp, as the longer end benefitted from the bid in Tsys. The summary of opinions from the BoJ's March meeting revealed little in the way of fresh information (as expected), while the JPY supply pipeline built as Berkshire Hathaway mandated for a round of benchmark bond issuance.
• The downtick in e-minis and local COVID-related lockdown in the city of Brisbane have provided support to the Aussie bond space, although the bid can't be described as particularly firm, with Aussie 10s still printing 1.0bp or so wider vs. U.S. 10s in cash trade. Meanwhile, futures have failed to unwind their overnight session losses, YM -1.0, XM -4.0.