Low-Key Start To New Week, Japan To Sell 10-Year JGBis

T-Notes trade unch. at 132-13, little changed in a slow start to the week. Cash Tsy curve has bear steepened at the margin. Eurodollar futures trade -0.25 to +0.50 tick through the reds. The space has been unfazed with fluctuations in e-minis, which have erased their initial uptick.

• JGB futures have given away their initial modest gains and last change hands at 151.39, 4 ticks above previous settlement. Cash yields are broadly lower, albeit margins are slim. Japanese factory-gate inflation registered at +3.6% Y/Y in Apr, beating the +3.1% median estimate. Focus turns to flash machine tool orders & 10-Year JGBi auction.
• In Oz, cash curve has bull flattened, catching up with Friday's after hours dynamics in U.S. Tsys. YM trades unch. & XM +2.0 as we type, both have been rangebound. Bills last seen unch. to -1 tick through the reds. The latest scheduled round of ACGB purchases from the RBA takes place today. While the local data docket is virtually empty, China's economic activity indicators will provide some interest.