Core FI Operate Shy Of Neutral Levels

Appetite for riskier assets has carried over into Asia trade, applying some weight to core FI. T-Notes have slipped, with all three main e-mini contracts operating in the green, and last trade -0-02+ at 138-05+, after peeking under Tuesday lows. Cash Tsy curve runs a touch steeper, with yields sitting unch. to +1.4bp higher. Eurodollar futures trade -0.5 to +0.5 tick through the reds. Macro headline flow has been pretty light thus far, but the U.S. docket is particularly packed, as it features a number of frontloaded releases ahead of Thursday's Thanksgiving.

• JGB futures re-opened lower, but have moved away from worst levels, even as the Nikkei 225 hit fresh multi-decade highs. The contract last trades at 152.10, 2 ticks shy of last settlement. Cash JGB yields trade mixed across the curve, with 2s outperforming. 40-Year JGB supply provides interest today.
• Aussie bond futures still slightly on the back foot, YM -1.0 & XM -5.5. Some saw early price action as a function of NZGB sell-off across the Tasman, after one big seller was seen at the latest RBNZ's QE ops. Elsewhere, the RBA offered to buy A$1.0bn worth of semi-gov't bonds, while the AOFM auctioned A$2.0bn worth of ACGB 21 May '32. Cash ACGB yield curve has bear steepened, with bills running 1-3 ticks worse off through the reds.