Eyes On Flows After Flattening

After a flurry of headlines in the NY/Asia-Pac crossover, covering everything from probable lockdown measures being implemented in Germany and France to a Wednesday briefing from the FBI & U.S. DoJ on security matters surrounding China, headline flow cooled, leaving core FI markets within the ranges they established in early Asia-Pac dealing. T-Notes stuck to a 0-02+ range, last +0-01+ at 138-28+, with cash yields sitting little changed across the curve. Market flow provided the highlight, with downside expression noted, via block trades in both the TYZ0 137.50 and 137.00 puts.

• JGB futures had a look through their overnight high in early Tokyo trade, but the move was fleeting, and the contract faded from best levels. Futures last +12, with 7s outperforming on the cash JGB curve, owing to the uptick in futures. Swaps marginally wider vs. cash, excluding 30s and 40s. Local headline flow has been light.
• Aussie bonds were willing to operate in narrow ranges, even as RBA board member Harper flagged the potential for further easing (although the rhetoric deployed was in tune with what we have heard from RBA Governor Lowe, among others), while domestic Q3 CPI was never going to move the goal posts for the RBA. YM -1.0, XM +2.5, holding flatter, while swaps were generally biased marginally wider across the curve again (expectations re: the outline of a broader round of bond buying at next week's RBA decision is likely the explanatory factor here). Bills sit unchanged to -1.