Core FI Show Some Weakness

T-Notes have ground lower from the off, moving away from Tuesday's highs. The contract sits +0-05 at 135-18+ as we type (off session low of 135-14+), with the latest leg lower in the USD exerting some pressure on core FI. Cash Tsy curve has undergone some marginal twist steepening, yields last seen -0.3bp to +0.2bp. Eurodollar futures last seen -0.5 to +0.5 tick through the reds. Broader headline flow has been headlined by the latest RBNZ MonPol decision, a presser with Gov Orr is currently underway.

• JGB futures re-opened higher after a Japanese holiday, but have already given up the opening gains and finished the morning session at 151.03, 3 ticks shy of last settlement. Cash JGB yields sit higher across a steeper curve, as the super-long end underperforms. There is an enhanced liquidity auction for off-the-run 5-15.5 Year JGBs coming up today.
• Australian YM sits -1.0 & XM trades -4.5 after posting a knee-jerk lower in sync with U.S. peers. Cash ACGB curve runs steeper, with yields last seen unch. to +6.2bp. Bills trade 1-2 ticks lower through the reds. The AOFM sold A$2.0 of ACGB 1.25% 21 May 2032, while the RBA offered to buy A$1.0bn of semi-gov't bonds with maturities of Jul '28 to May '32, excluding TCV Oct '29& TCV Sep '31. On the data front, completed construction work missed exp. & wage price index was better than forecast.