Futures Cheaper, US Tsy Yields Push To Fresh Cycle Highs Yet Again

In post-Tokyo trade, JGB futures are weaker, closing -16 compared to settlement levels, after US tsys finished 1-8bps cheaper. US tsys extended recent losses with the steepening impetus seen in recent sessions continuing with Gaza aid headlines aiding at the margins.

• There were several Fed speakers yesterday, Gov Waller provided hawkish remarks noting robust super-core inflation is not at a level where the Fed can make progress towards its inflation goals. He also said additional tightening would be required if the economy continues to show underlying strength and inflation stabilises or re-accelerates.
• NY Fed President Williams reiterated comments seen in a previous Fed communique that there is still a way to go on inflation and rates will need to remain restrictive for some time.
• There was a brief recovery in US tsys after the latest 20-year auction stopped through, however, the move didn't follow through and US tsys ticked towards session lows into the close.
• Higher government bond yields, despite rising global uncertainty, have driven flows into alternative portfolio hedges like gold, which has rebounded more than 8% off the October lows.
• Today the local calendar sees Trade Balance and International Investment data.
• Elsewhere, the Australian Labour Market Report for September provides the highlight in Asia. Further out, Fedspeak from Chair Powell headlines, along with US Initial Jobless Claims and the Philadelphia Fed Business Outlook.