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BOND SUMMARY

T-Notes still holding to a narrow 0-04 range, last +0-02+ at 139-20+, with little impetus in early cash trade as yields print unchanged to 0.7bp richer across the curve. There has been little to inspire the space on the headline front thus far, with participants happy to look through the fresh record highs for the S&P 500 e-mini contract. The usual mix of headline flow (COVID-19 vaccine matters, global pockets of virus worry, U.S. fiscal impasse and political tension) has done little to shape early trade this week.

  • Questions re: the health of Japanese PM Abe are swirling given the recent run of hospital visits, despite government officials seeking to downplay the situation. JGB futures +9, with little in the way of meaningful impetus in trade through the overnight highs. Yields a touch richer across the curve, although the moves remain contained. The size of the BoJ's latest round of 3-5 Year Rinban operations were unchanged, with a moderation in the offer/cover ratios (2.56x vs. prev. 3.13x.), while spreads tightened.
  • The Aussie bond curve is flatter. YM unch., XM +2.0. Victoria's COVID-19 case count continues to moderate, although that wasn't enough to prevent a 12-month extension of the state's state of emergency, per local media reports. Participants remain on the lookout for the formal launch of the new ACGB Nov-'31 via syndication after Friday's AOFM announcement re: the opening of the line.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com