Finding Poise

Core bond are finding poise as markets across the globe re-open in the wake of Easter holidays. ACGBs caught up with Tsy weakness from when Sydney markets were shut but are now off worst levels.

• T-Notes have been happy to hold a fairly narrow (0-05+) range and last change hands +0-02+ at 119-23. Eurodollars run +0.5 to -0.5 tick through the reds. Some very marginal flattening can be seen in cash Tsy yield curve as it has moved slightly lower. The local data docket is limited to housing starts/building permits, with remarks from Chicago Fed Pres Evans also coming up. Worth noting that his colleague Bullard signalled that he sees a 75bp rate hike as an option.
• JGB futures have crept higher after a softer re-open. The contract changes hands at 149.41, 7 ticks above last settlement. The yield curve has flattened at the margin. Japan's MoF will hold a liquidity enhancement auction for JGBs with 5-15.5 years until maturity.
• Aussie bonds took a hit as trading re-opened in Sydney after Easter holidays. Futures have clawed back some losses and YM now deals -1.5, with XM -2.0. Bills trade +1 to -2 ticks through the reds. Cash ACGB yields trade 5.5bp to 8.8bp higher (though off earlier highs) across the steepened curve. Note that the RBA will today publish the minutes from its most recent monetary policy meeting, when it dropped the reference to "patience" from the forward guidance.