Core FI Steady Amid Thanksgiving Lull

Trading activity waned in the Asia-Pac session owing to the Thanksgiving holiday in the U.S., with cash Tsy markets shut. Little to report on regional developments, as news and data flow lacked any notable market-movers. T-Notes edged higher and last trade +0-01 at 138-09+, after holding a 0-01+ range in Tokyo trade, with Eurodollars running unch. through the reds.

• JGB futures slipped through overnight lows into the lunch break, before stabilising in the afternoon session. The contract last deals at 152.11, 3 ticks shy of last settlement, as the Nikkei 225 managed to eke out some gains. Cash JGB curve underwent some very light steepening, with the super-long end underperforming. The space looked through the BoJ's decision to leave the sizes of its 1-3 & 5-25 Year JGB purchases unch. Local debt issuance outlook provided some interest. Japanese MoF officials held a meeting with bond investors and are set to meet with primary bond dealers later today, as the gov't is putting together the third extra budget.
• Aussie bonds also held relatively narrow ranges, with YM trading unch. XM slowly ground higher and last sits +2.0. Cash ACGB curve has bull flattened at the margin, with yields last seen unch. to -2.1bp. Bills trade unch. to -1 tick through the reds. The space was unfazed by the RBA's offering to buy A$2.0bn worth of ACGBs with maturities of Nov '28 - Nov '31 or Australia's below-forecast Q3 private capex data.