Curves Steepen To Start The Week

Earlier dynamics continue to hold for the space, even with T-Notes back from worst levels, last -0-00+ at 140-02, with yields running 0.4-1.8bp cheaper across the curve, light steepening in play. Flow-wise the aforementioned downside expression via a 10.0K block lift of the TYZ0 139.00 puts still stands out. TikTok matters continue to dominate headline flow, but participants are more likely to be focusing on this week's quarterly refunding announcement.

• Broader flows seemingly weighed on the JGB space after some underperformance for futures in the final overnight session of last week. Contract last -20 ticks vs. settlement, with the cash curve twist steepening as 2s outperfrom. The latest round of 1-3 Year BoJ Rinban ops saw the size left unchanged, cover ratio ease and spreads widen a touch when compared to the previous ops. Elsewhere, the final round of Q1 GDP data edged up vs. the prior estimate, but still printed in negative territory, supported by a beat in CapEx data.
• Dynamics seen in the Tsy market have resulted in steepening in Aussie bond futures, even with cash markets being closed owing to the NSW holiday. Little else to note for the space, outside of the aforementioned headlines, with minimal impetus from local data that confirmed already acknowledged themes. YM -1.0, XM -4.0.