Fresh Tsy Pressure & Gap Lower For German FI, Asia Core FI More Resilient

Fresh pressure has kicked into the U.S. Tsy space after the cash re-open, after a relief bid was observed on the back of the factors that we have outlined elsewhere. A small gap lower for German FI futures was also observed at their re-open. Note that that UXY. WN & US Tsy futures contracts have taken out heir early session lows, registering new cycle lows in the process.

• Meanwhile, JGB & Aussie bond futures are a little more resilient, operating above their respective pre-weekend, post-settlement lows, with the continued presence of the BoJ enforcing its YCC parameters and the potential for cross-market interest in Aussie paper vs. the likes of U.S. Tsys providing sources of respective, relative support.