Stabilisation

Little to write home on the early part of the Asia-Pac session, with markets stabilising after the mid-week turmoil inspired by Fed monetary policy decision. A strong earnings report from Apple has helped soothe the nerves, lending support to U.S. equity index futures.

• Rangebound price action from T-Notes thus far, with TYH2 last seen -0-00+ at 127-20+. Eurodollar futures trade 0.5-1.0 tick lower through the reds. Cash Tsys trade on a marginally softer footing, with yields up 0.2-0.7bp across the curve. Core PCE Price Index & U. of Mich Sentiment headline the U.S. data docket on Friday.
• JGB futures sold off in early trade before stabilising near their current levels. JBH2 last trades at 150.78, 3 ticks above previous settlement. Cash JGB yields sit marginally higher across the curve, save for 5s. A deceleration in Tokyo CPI inflation underscored the need for the BoJ to stand by their ultra-loose policy stance. Governor Kuroda will speak in parliament later today.
• Aussie bond futures have held narrow ranges, with YM +1.5 & XM +6.0 at typing. Bills trade -1 to +2 ticks through the reds. ACGB curve has bull flattened in cash Sydney trade, playing catch-up with overnight moves in U.S. Tsys. Yields last trade 1.8-6.3bp across the curve. The auction for A$1.0bn worth of ACGB May '32 came and went.