Plenty Of Vol. In Asia

Core FI was subjected to some volatility during Asia-Pac hours, with news that U.S. Democrats cannot include a $15/hour minimum wage in their COVID relief package, per the ruling of a Senate official, allowing the space to unwind some early/overnight weakness, although trade continued to be choppy and active, with the space operating shy of best levels at typing.

• TYM1 last +0-03 at 132-21+, with the belly of the curve seeing some light outperformance after yesterday's dramatic cheapening. Activity was above average, with T-Note volume now topping 300K.
• JGB futures also followed the broader swings, and last print 30 ticks softer vs. yesterday's settlement, with 7s underperforming in cash trade, cheapening by a little over 2.0bp. The BoJ chose not to step in to protect the upside of its permitted trading band for 10-Year JGB yields (highs of ~0.18%, limit of ~0.20% ), despite some speculation that it may do so.
• Aussie bonds saw a light boost ahead of the aforementioned broader bid, with some fresh interest in establishing cross-market AUD longs seemingly apparent, although a repeat A$3.0bn round of RBA purchases covering ACGB Apr '23 & Apr '24 did little for the space, leaving participants to take cues from broader price action for much of the session.