Light Pressure In The Main During Asia Hours

T-Notes held to a 0-05 range overnight, last -0-01+ at 137-05, with a sense of normality coming back to the fore re: procedural matters in DC as GOP Senators rolled back their objections to the certification of the Electoral College count. Still, calls for Trump's impeachment have grown, while there are suggestions that senior members of Trump's staff could resign from roles in the coming days. Potential Asia-Pac buyers haven't shown their hand, with the fiscal dynamic in the U.S. perhaps sidelining them (as we suggested may be the case earlier). The curve has bear steepened, with 30s sitting 2.0bp cheaper vs. closing levels at typing. On the flow side 20K block buying of the TYH1 136.50/136.00/135.50 put ladder headlined.

• JGB futures are -14 ticks vs settlement levels, softening further in early afternoon trade, while the cash curve saw some twist flattening as the super long end was initially more concerned by the impending state of emergency declaration in Tokyo & the surrounding areas (details were outlined by COVID response chief Nishimura and met expectations that were a product of recent press reports), while the shorter end looked to the dynamic of global FI markets. The super-long end faded then from best levels as we moved through the day. Elsewhere, local monthly wage data was much softer than expected, in both headline and real terms.
• More attractive FX-hedged entry points for Japanese investors may have provided some support for the Aussie bond space in early Sydney trade, before the broader impetus provided some fresh pressure, with YM -1.0 and XM -3.0 at typing.