Core FI Trade On Softer Footing

T-Notes have slipped in the lead-up to the Trump-Biden debate and last deal -0-03+ at 138-07, with the final face-off between the two presidential candidates just getting underway. Cash Tsy yield curve runs very marginally steeper. Eurodollar futures sit unch. to +0.5 tick through the reds.

• JGB futures have ebbed lower, extending overnight losses, and last deal at 151.82, 16 ticks below last settlement. Cash JGB yields mostly sit slightly above neutral levels, save for 2s. Japanese CPI figures didn't deviate much from forecasts, while flash Jibun Bank PMIs were little changed vs. the prior readings.
• In Oz, YM -1.0 & XM -5.0, with the latter unwinding the gains it saw in the aftermath of RBA Gov Lowe's Oct 15 speech. Little reaction seen to a pretty solid ACGB '26 auction, which saw a strong pricing even as the cover ratio wasn't particularly standout. Cash ACGB yield curve has bear steepened, with yields last seen 0.1-5.6bp higher. Bills trade 1-2 ticks lower through the reds. On the data front, flash CBA PMIs were decent enough, with a slightly slower expansion in the m'fing sector coupled with acceleration in the expansion of the services sector.