JGBs & ACGBs Under Post-FOMC Pressure, Tsys Stabilise

Asia-Pac core FI came under pressure from the post-FOMC impulse, while U.S. Tsys stabilised in the wake of a sharp sell-off. The Fed concluded their monetary policy meeting by paving way for a rate hike in March, while their rhetoric was testament to the potential for a steeper tightening path than had been previously anticipated.

• JGBs softened across the curve, as cash trading re-opened in Tokyo. Yields remain comfortably in positive territory, as Wednesday's FOMC meeting reinforced expectations of a growing policy divergence between the U.S. and Japan, with the BoJ committed to their current ultra-loose stance. JGB futures started the session on a softer footing and ground lower thereafter. JBH2 sits at 150.78, 18 ticks below last settlement, after hitting its worst levels in a week. The auction for 2-Year JGBs, which saw low bid match dealer expectations, provoked little to no market turbulence.
• ACGB yields shot higher as cash trading resumed after an Australian holiday, with Aussie bonds taking a hit from the FOMC's hawkish pivot. Yields last sit 6.2-8.7bp higher across the curve, after hitting fresh cycle highs in early Sydney trade. The main futures contracts tried to move away from worst levels, but YM eased off later in the session and last trades -8.0, with XM -6.0 (off lows) at typing. Bills trade 2-11 ticks lower through the reds.
• T-Notes blipped higher early on and stabilised thereafter. TYH2 last changes hands -0-03 at 127-13+. Eurodollar futures run 4.0-12.0 ticks lower through the reds. Tsy curve runs flatter in cash Tokyo trade, with yields last seen +3.0bp to -1.8bp. Advance GDP data, durable goods orders & weekly jobless claims headline the U.S. data docket today, with a 7-Year Tsy auction also due.