Plenty Of Risk Fails To Ignite Bid For Core FI

T-Notes last +0-01+ at 139-02+, with the contract hugging a tight 0-03+ range as cash markets remain closed for the Labour Day holiday. Little to note on the headline front during Asia-Pac hours, outside of the broader weekend headline risks that have been flagged elsewhere. Volume in futures has been respectable given the lower liquidity backdrop owing to the aforementioned U.S. holiday, with an eye on the broader impetus from e-minis centring on developments surrounding the tech sector.

• JGBS have generally been a touch cheaper than Tokyo settlement levels during Monday trade, with futures printing 11 ticks worse vs. Friday's Tokyo close, holding a tight range at the start of a new week, grinding away from the lows witnessed shortly after the morning open. Little reaction to the moderation in cover ratios witnessed across the latest round of 1-5 & 25+ Year BoJ Rinban ops.
• Steepening remains at the fore for Aussie bonds today, with YM -1.0 and XM -8.0, as the latter has a foray through its SYCOM lows. A lack of RBA purchases has been noted, although there was little in the way of expectations re: such a move. Elsewhere, the latest round of ACGB '29 supply was well received. Corporate supply announcements have been steady. On a state level, the 2-week extension of Victoria's lockdown measures was noted, as was the A$18bn widening of Queensland's projected debt levels for the current financial year, accompanied by a relatively stable deficit outlook vs. previous projections.