Steady As She Goes In Asia

T-Notes held to a 0-03 range overnight, last dealing -0-00+ at 133-31, while cash Tsys trade at virtually unchanged levels across the curve. There was a lack of meaningful news headlines during Asia hours. Roll flow bolstered futures volumes, while the options space saw block buys of the USU1 169.50 (+2.0K) and USV1 166.00 (+2.5K) calls. We also saw a small screen buyer of the TYV1 132.00 puts. Looking ahead to NY hours, we will see prelim durable goods data and the latest round of 5-Year supply.

• JGBs futures nudged lower during Tokyo dealing given the impetus from Tuesday's U.S. Tsy trade, last printing 4 ticks below yesterday's settlement levels, while the major cash JGB benchmarks were little changed. The latest round of BoJ Rinban operations saw mixed variations re: the movement in the cover ratios vs. prev. ops, but nothing in the way of sizeable swings. BoJ board member Nakamura didn't bring anything new to the table in his latest address.
• YM -2.0 & XM -1.0 at typing, with early supply-related pressure waning. The daily state COVID case counts saw a new record for NSW (919), while new cases in Victoria pulled back below the 50 level. As a reminder, commentary from Australian PM Morrison and NSW Premier Berejiklian has started to focus on hospitalisation/serious cases in recent days, as opposed to the outright case count. On the supply front the A$1.0bn ACGB May '32 round of supply saw the average price print 0.36bp through prevailing mids at the time of supply (per Yieldbroker), with the cover ratio holding above 5.0x. On the local data front completed construction work for Q2 got the Australia GDP partials off to a soft start.