Sedate Asia-Pac Trade

U.S. Tsys experienced relatively sedate Asia-Pac trade, with macro headline flow on the lighter side, leaving T-Notes to operate in a narrow 0-03+ range, last -0-02 at 136-28, while cash Tsys sit within 1.0bp of closing levels, biased ever so slightly cheaper on the day. Pockets of TY selling were seen, although it was a 10K block of the TYJ1 138.00/133.50 risk reversal, selling the calls to buy the puts that caught the eye (with that particular round of flow going against the broader mantra of recent regional block trades, albeit at a slightly longer maturity). Eurodollar futures trade +0.5 to -0.5 through the reds. Once again, pockets of selling caught the eye here, with EDH1, EDM1 & EDZ2 given at different times.

• JGB futures ticked higher as the BoJ's 2-day meeting got underway, with little in the way of supportive headline flow seen, while the offer/cover ratios witnessed at the latest round of BoJ 1-10 Year Rinban ops weren't particularly supportive. Futures +9 last, a little shy of best levels of the day, while the 5- to 20-Year zone of the curve outperformed.
• Aussie bonds generally benefitted from a solid showing at the first ACGB auction of calendar '21, although hedging surrounding the pricing of TCV's new Nov '25 benchmark line triggered some hedging related flows in YMH1 and pressure in that zone of the curve during the Sydney morning. YM -0.5, XM +1.0.