Core FI Regain Poise, BoJ Rinban Ops Eyed

Core FI space getting some reprieve in early Asia-Pac trade, with recent headline flow offering little to rock the boat.

• T-Notes are catching breath after Thursday's sell-off, creeping higher in early Tokyo trade. TYM2 last changes hands +0-02+ at 120-20. Eurodollars trade around unchanged levels at typing. Cash Tsy yields sit 0.8-3.2bp lower, with 10-Years outperforming and curve steepening a tad. Wholesale inventories provide the main point of note on the U.S. docket today.
• Today's Rinban operations will draw attention as the recent global bond sell-off was testing the BoJ's resolve in defending the official cap on 10-Year yield. JGB futures re-opened higher this morning and have extended gains since. The contract trades at 149.43, 4 ticks shy of last settlement. Cash JGB yields are mostly little changed, save for the underperforming super-long end. On the data front, Eco Watchers Survey will take focus later in the day.
• The ACGB yield curve has bear steepened in early Sydney trade, with the space catching up with overnight moves in U.S. Tsys. Bills run 1-3 ticks lower through the reds. Futures have edged higher and YM trades -0.5 at typing, with XM -3.0. Reminder that the RBA will publish its Financial Stability Review today, while the AOFM will publish the weekly issuance slate.