Core FI Sees Tight Ranges Prevail In Asia

Core FI has looked through the latest round of headlines re: Sino-U.S. tensions, which seemed to represent at least a marginal de-escalation as the NYSE walked back its previously declared intentions re: the de-listing of 3 large Chinese telecoms firms. T-Notes stuck to a narrow 0-03+range, last -0-02 at 138-02, while the cash Tsy curve saw some light bear steepening, with 30s cheapening by ~1.0bp in Asia-Pac hours. Indonesia's marketing of 10-, 30- & 50-Year USD bonds caught some attention, while light instances of downside screen interest via USG1 136.00 puts and EDU2/U4 steepeners dominated on the flow side, as participants await the results of the Georgia Senate run-off.

• JGB futures reclaimed the 152.00 level, last +16 on the day, as participants looked to local COVID-19 worry and steady to softer offer/cover ratios in the latest round of BoJ 1-10 Year Rinban ops for support (even as the Bank bought Y50bn less of 1-3 Year paper vs. prev).
• The Australian curve bull flattened in the wake of the move seen in U.S. Tsys after Sydney closed on Monday, with little in the way of idiosyncratic headline flow noted, outside of a handful of cases of the UK's more aggressive COVID strain being detected in one of Western Australia's travel quarantine hotels. YM +0.5, XM +3.5.