Pfizer Headlines Pressure Core FI

Headlines noting that Pfizer's Covid-19 vaccine could receive regulatory review as soon as in Oct triggered some light risk-on flows, prompting T-Notes to post a leg lower. The contract last sits -0-01 at 139-17, off the reaction low of 139-13+. Yields generally trade slightly lower, curve runs marginally flatter. Eurodollar futures last seen unch. to -1.0 tick through the reds.

• Despite having a look above overnight highs in early trade, JGB futures have eased off on the back of aforementioned Pfizer news. The contract last trades at 151.93, 1 tick above settlement. Yield curve runs flatter, with 7s outperforming & 3s lagging. Japanese CPI data provided no notable deviations from expectations, while the BoJ's 1-3, 5-10 & 25+ Year Rinban ops saw all purchase sizes unchanged.
• In Oz, YM trades -0.5, with XM unch. and off highs owing to the Pfizer headlines. Cash ACGB curve has flattened marginally, with yields sitting +0.4bp to -0.4bp. Bills last trade -1 to +1 tick through the reds. The space has shown little reaction to a decent ACGB Nov '24 auction and local data. Preliminary readings of CBA PMIs showed that the services sector has moved into contraction, while flash retail sales rose 3.3% in July.