Off Worst Levels In Lackluster Trade

T-Notes have edged away from lows. Regional participants were happy to sell Tsys at the cash re-open even as e-minis ticked lower (ESM1 back below 4,200), before softer than expected official Chinese PMI data helped the space form a base. The cash Tsy market was closed during yesterday's Asia-Pac session, owing to a Japanese holiday, with the same story in play Monday through Wednesday of next week (with a Chinese market holiday also set to sap liquidity over that period). T-Notes last -0-02 at 131-29+, operating in a 0-05+ range, with recent trade seeing a 3,750 lot block seller at the current market price. The cash space trades little changed to 1.0bp cheaper across the curve.

• JGB yields traded either side of unchanged in Tokyo, with little in the way of definitive direction observed across the curve, in a session that plugs a gap between 2 holiday periods. Futures last +2 vs. the previous settlement level. Local data was mixed, with Tokyo CPI missing, while the labour market report and industrial production reading proved to be firmer than expected.
• YM -1.0, XM -3.0, a little off their respective Sydney lows, in what has been fairly limited trade. Softer than expected official Chinese PMI data helped the space find a bit of a base after what seemed to be a case of offshore-related pressure (stemming from U.S. Tsys and heavy offers in the latest RBNZ LSAP operation). Next week's AOFM issuance slate proved to be relatively vanilla. Elsewhere, The latest round of ACGB Jun '31 supply saw the weighted average yield stop 0.73bp through prevailing mids at the time of supply (per Yieldbroker pricing), meanwhile, local private sector credit growth topped exp. Month-end extension flows are eyed, given the upcoming maturity of ACGB 5.75% 15 May 2021.