Post-FOMC Impetus Hits Early On, Starts To Recede

Musings in the wake of Wednesday's monetary policy decision from the Fed have dominated morning Asia-Pac trade, after policymakers set the scene for a March rate hike and signalled resolve in their attempts to curb rising inflation. JGBs & ACGBs took a hit as cash markets re-opened, but have stabilised since, while pressure on Tsys has now dissipated.

• ACGBs took a hit as cash trading re-opened after a public holiday in Australia. Aussie bonds retreated under pressure from post-FOMC market impetus, with yields printing fresh cycle highs as a result. When this is being typed, ACGB yields sit 6.0-8.0bp higher (already off initial highs) across a slightly flattened curve. Aussie bond futures re-opened on a softer footing, but have now ticked away from lows, with YM last -6.5 & XM -5.0. Bills trade 2-8 ticks lower through the reds.
• JGBs are broadly weaker in cash Tokyo trade, with the yield curve undergoing some flattening. JGB futures started on a softer footing before stabilising and last trade at 150.79, 17 ticks below previous settlement. Japan's MoF will auction 2-Year JGBs later today.
• T-Notes have moved away from Wednesday's post-FOMC low in the early part of the Tokyo session. TYH2 trades -0-03+ at 127-13 at typing. Eurodollar futures sit 3.0-12.0 ticks through the reds. Cash Tsy curve has twist steepened a tad, with yields last seen -2.1bp to +2.4bp. Advance GDP data, durable goods orders & weekly jobless claims headline the U.S. data docket today, with a 7-Year Tsy auction also due.