Familiar U.S. Headlines, Solid ACGB Auction Under The Microscope

Familiar sources of headline risk have taken focus in Asia as news flow has offered little fresh. T-Notes have edged higher and last trade -0-01+ at 138-28. Cash Tsy yields trade 0.4-1.2bp lower across a slightly flatter curve. Eurodollar futures sit unch. to -0.5 tick through the reds.

• JGB futures have round tripped from a session high of 151.96 and last deals at 151.90, 2 ticks above settlement. Cash JGB yields mostly sit lower a tad, with 2s outperforming. Declines in Japanese earnings & spending were in-line to marginally worse than expected, while the BoJ left the sizes of its 1-3, 5-10 & 25+ Year JGB purchases unch.
• Australian YM trades unch. & XM +1.5 after extending gains in the wake of a solid (though slightly smaller-sized than usual) ACGB '25 auction. Cash ACGB curve has bull flattened, with yields sitting unch. to -1.5bp. Bills trade unch. to -2 ticks through the reds. The AOFM's pretty vanilla weekly issuance schedule came and went, as did Australian above-forecast housing finance data & the RBA's FSR. Chinese Caixin Services & Composite PMIs, due shortly, will provide some interest.