No Real Clarity

Yields are virtually unchanged across the U.S. Tsy curve. T-Notes are holding a tight 0-04 range, last -0-03 at 139-22, struggling to catch a bid, even as e-minis continue to trade defensively after yesterday's sharp pullback for the equity space. Perhaps participants are willing to sit on the side ahead of NFPs and the Labour Day weekend.

• JGB futures struggled for a real sense of direction, last +2, with some light underperformance creeping into the belly of the cash curve into the lunchbreak, before the latest round of 5-10 Year BoJ Rinban ops provided modest support, on the back of a moderation in the offer to cover ratio (down to 1.72x) and a tightening of the spreads the ops were conducted at. Finance Minister Aso offered little new, as he pointed to the need to revitalise the economy and focus on seeking a balanced budget.
• The Aussie bond space held onto its overnight flattening impetus, with XM consolidating shy of its SYCOM highs during a limited Sydney session. YM unchanged, XM +2.5. Next week's AOFM issuance schedule is light by recent standards, while news flow saw Australian PM Morrison point to a push towards an economic re-opening come December.