Core FI Tread Water In Early Asia-Pac Trade

Market holidays in China, Hong Kong, Taiwan and South Korea, as well as a stock exchange outage in Japan have contributed to making early Asia-Pac trade very sedate. T-Notes have gyrated within a 0-03 range and last trade -0-02+ at 139-14+, while cash Tsy yields sit 0.2-1.0bp higher. Eurodollar futures sit unch. to -0.5 tick through the reds. Familiar fiscal matters continue to grab attention in the U.S.

• JGB futures struggle for a clear direction and last trade at 152.06, 5 ticks below settlement. Cash JGB curve runs marginally flatter as we type. Recovery in breakdown figures in the BoJ's Tankan report was generally slower than expected, while the final reading of Jibun Bank M'fing PMI was revised a touch higher. Focus moves to 10-Year JGB supply, due later today.
• Turning to Australia, YM trades -2.0 & XM sits -3.5, with both unwilling to break out of very narrow ranges. Cash ACGB curve has bear steepened, with yields last seen 0.7-4.3bp higher. Bills trade 1-2 ticks lower through the reds. On the data front, Australian job vacancies staged a dynamic 59.4% rebound in August. In one hour's time, PM Morrison will unveil his plan to boost Australian manufacturing, but main snippets from the speech have already been circulated by the local press.