Pretty Steady

T-Notes were happy to hold within the upper half of yesterday's range in Asia-Pac dealing, last -0-01 at 131-24+, with cash Tsys trading little changed to ~1.0bp cheaper, 20s leading the cheapening. There has been nothing in the way of notable headline or market flow for Tsys, with participants taking a bit of a breather after Tuesday's recovery from session lows.

• Another narrow session leaves JGB futures 1 tick below yesterday's settlement level, while cash JGBs run little changed to ~0.5bp cheaper across the curve. There has been little in the way of top tier news flow, with BoJ's Adachi reiterating his dovish leaning and the latest round of BoJ Rinban operations experiencing mixed offer/cover ratios when compared to the previous operations for each bucket:
• In Sydney YM -1.0, XM -1.0. Both contracts have recovered from worst levels of the day after the latter had a brief look below early Sydney/overnight lows on the back of stronger than consensus Q1 GDP readings for Australia, although the sell-side had largely adjusted to the view that risks were skewed to the upside re: the release in the wake of the partials prints, limiting the follow through and stickiness of the move. Both the Q/Q & Y/Y readings were within the range of estimates provided in the BBG survey. The 7-day extension of the COVID-related lockdown covering the Melbourne area (although the regional Victoria area may not see its restrictions extended) was also noted, but had no lasting impact on the space. Elsewhere, Bills trade unchanged to 1 tick lower through the reds, with a post-fix bout of buying activity noted in IRM1 after 3-Month BBSW fixed at the lowest level witnessed since late March.