Kiwi Underperforms In A Generally Slow Start To The Session

Wednesday's calendar was packed with Fed speakers, who resumed their calls for further fiscal support, while coronavirus data from across Europe and the U.S. fuelled worries about the second wave of infections. In the NY/Asia crossover, Canadian PM Trudeau noted that his country's four biggest provinces are already witnessing a second wave, while U.S. Pres Trump said that the White House could veto any tightening of the FDA's rules on the emergency clearance of a Covid-19 vaccine. On the bright side, Victoria's coronavirus case count continued to improve, with just 12 new patients diagnosed over the last 24 hours.

• E-minis have headed lower from the off, in the wake of a negative session at Wall Street. Equity benchmarks in Japan, South Korea and Australia re-opened lower.
• T-Notes crept higher initially, topped out at 139-18 and backed off, now trade +0-00+ at 139-16+, all within a 0-02+ range. Cash Tsy yields sit marginally shy of neutral levels. JGB futures re-opened higher and last trade at 152.27, through yesterday's highs & +6 ticks vs. settlement. Cash JGB yields sit marginally lower across the curve. In Oz, YM -0.5 & XM -1.0, both rangebound. Cash ACGB yields trade a touch higher across the curve.
• The only notable mover in the G10 basket has been the kiwi, which comfortably underperforms all of its peers. Hard to pin the move on any particular catalysts, as local headline flow has been thin and trade data was in-line.
• The Asia-Pac calendar is rather unimpressive today. The BoJ released the minutes from its Jul MonPol meeting and focus turns to 40-Year JGB supply.