Core FI On Firmer Footing, ACGBs Look Through Australia's Decent Labour Force Survey

T-Notes have continued to push away from NY lows in Asia, as a broader sense of caution lingers. Little of note in the recent news flow, but worth noting that the U.S., UK, Canada, Australia & NZ criticised China for its Hong Kong policies, while the press have pointed to the need for the EU to draw up contingency plans for a no-deal Brexit. The contract trades +0-05 at 138-11, with cash Tsy yields sitting lower across a slightly flattened curve. Eurodollar trades -0.25 to +0.5 tick through the reds.

• JGB futures have ground higher and last trades at 152.16, just shy of last settlement. Cash JGB yields are marginally mixed across the curve, with 2s outperforming & the super-long end underperforming. There is 12-Month Bill supply from the MoF coming up today.
• The ACGB space has shown a limited reaction to the release of an encouraging labour market report out of Australia. YM unch. & XM -0.5, after posting a brief downtick upon the release of jobs data. Cash ACGB yields trade a touch higher across the curve. Bills trade unch. to -2 ticks through the reds. Worth noting that the RBA offered to buy A$2.0bn of ACGBs with maturities of Nov '28 to May '32.