Hicks Story Lends Brief, Modest Support To Core FI

Core FI went slightly bid as BBG reported that U.S. President Trump's aide Hope Hicks was diagnosed with coronavirus infection, but the moves were limited and the contracts have already pared gains. T-Notes trade +0-01 at 139-18+ after holding a 0-03+ range and topping out at 139-19+. Cash Tsy yields sit marginally shy of neutral levels. Eurodollar futures trade +0.5 to -1.0 tick through the reds. The NFP report steals the limelight today.

• JGB futures climbed to 152.12 before turning their tail and easing off. The contract last sits at 152.06, +1 tick vs. settlement. Cash JGB yields sit slightly lower, save for 3s & 4s, with 40s outperforming. Japanese jobless rate printed in line with expectations and the BoJ left the sizes of its 3-5 & 10-25 Year JGBs unchanged. Consumer confidence data and 3-Month Bill supply are due later in the day.
• Down Under, YM +0.5 & XM +4.5 as we type, showing little reaction to domestic retail sales, which fell less than expected in August. Cash ACGB yield curve has bull flattened, with yields sitting 0.7-4.4bp lower. Bills trade unch. to +1 tick through the reds. The AOFM offered A$500mn worth of ACGB 3.25% 21 Jun '39 and eyes move to the weekly issuance schedule, due at the top of the hour.