Core FI Underpinned By Overnight Impetus From U.S.

T-Notes have caught a bid as Tokyo participants came in, digesting yesterday's U.S. CPI data and 10-Year debt auction. The contract jumped Wednesday as monthly U.S. inflation slowed, with the core metric missing expectations, weighing on prospects of sooner asset purchase tapering from the Fed. Another round of purchases came on the back of a particularly solid 10-Year Note offering. With little in the way of notable headline flow so far, T-Notes trade +0-04+ at 133-23. Cash Tsy yields sit a tad lower across the curve, with 5s outperforming at the margin. Eurodollar futures last seen unch. to +2.0 ticks through the reds. Factory-gate inflation, weekly jobless claims & a 30-Year auction take focus in the U.S. today.

• JGB futures have crept alongside T-Notes and last sit at 152.15, 11 ticks above previous settlement. The contract tested its overnight high, but has struggled to pierce it so far. Cash JGB yields last seen slightly lower across the curve, with 5s outperforming. The BoJ will buy 1-10 Year JGBs during today's round of Rinban ops.
• The RBA are also set to buy debt today, while domestic Covid-19 situation remains a major talking point in Australia (NSW reports daily cases at the top of the hour). Cash ACGB curve has absorbed overnight impetus from U.S. Tsys and bull flattened in early Sydney trade. Aussie bond futures have crept higher, with YM last seen +1.5 & XM +3.5. Bills trade -1 to +3 ticks through the reds. Consumer inflation expectations provide the only point of note on the Aussie data docket today.