Debt Supply Galore

The absence of notable fresh catalysts has left T-Notes to extend overnight losses and probe the water under Tuesday's low, albeit the move has been very limited. The contract last trades -0-01 at 133-16+, with participants preparing for the release of U.S. CPI data today. Fedspeak from Bostic, George & Logan as well as 10-Year Tsy supply will also provide interest. Cash Tsy yield curve runs marginally steeper as we type, as the aforementioned 10-Year auction & ample corporate supply this week may be exerting some minor pressure on the longer end. Eurodollar futures trade +0.5 to -0.5 tick through the reds.

• JGB futures have struggled for a clear direction in early Tokyo trade, printing a fresh one-month low in the process, and last change hands at 152.09, 5 ticks shy of yesterday's settlement. Cash JGB yields generally trade in close proximity to unchanged levels, although 2s outperform. The MoF will auction Y900bn of 30-Year JGBs later today, after the previous offering of this tenor drew the highest bid/cover ratio since Nov 2020.
• The AOFM are also set to sell debt today, tapping the 3.25% 21 Jun '39 Bond for the first time since Oct 2020, with the results of the auction due at the top of the hour. The local data docket is headlined by Westpac Consumer Confidence, which fell 4.4% M/M in August. Any fresh updates on Australia's Covid-19 outbreak will grab attention from here. YM trades -1.0 & XM -2.5, both rangebound in early trade. Cash ACGB curve bear steepened at the reopen, with yields last seen up to 2.1bp higher. Bills sit unch. to -1 tick through the reds.