Debate Season

Tsys continued to coil within familiar territory during Asia-Pac hours as the latest round of fiscal developments did little to meaningfully narrow the gap across the aisle, while participants await a heavy round of Fedspeak and the first U.S. Presidential candidate debate later on Tuesday. T-Notes last +0-01+ at 139-21+, sticking to a very narrow 0-02 range overnight, while yields sit little changed across the curve.

• JGB futures nudged higher, after holding above 152.00, although there was little in the way of significant headline flow to trade off. The latest round of 2-Year supply wasn't the most convincing on the cover ratio front (lowest bid/cover witnessed at a 2-Year auction since September 2019). The tail was a touch wider than the previous auction, albeit very marginally, while the low price was a shade higher than expected (the BBG dealer poll looked for a low price of 100.475). Futures last +5, with the cash space a touch richer.
• Aussie bonds also did little, with focus on next week's risk events (the RBA decision and Budget) evident. YM & XM both -0.5 at present.