T-Notes Dip In Sync With Aussie Bonds

T-Notes took a dip in tandem with 10-Year Aussie bonds amid little in the way of apparent headline catalysts, which could be a delayed reaction to the release of Australia's stronger than expected capex data. YM sits -6.5 & XM -13.5, both hovering just above session lows. Cash ACGB curve has bear steepened, with yields last seen +1.4-13.1bp. Bills trade 2-8 ticks lower through the reds. The RBA's return to the market to enforce its 3-year yield target has failed to deter bears. The Reserve Bank offered to buy A$3.0bn of ACGBs maturing in Apr '23 & Apr '24 on top of an offer to purchase A$2.0bn of ACGBs with maturities of Nov '28 to May '31 under the QE programme. The cumulative size of purchases is the largest since Mar 2020.

• T-Notes trade -0-03 at 135-02, just above the session low of 135-01. Cash Tsy curve runs steeper, with yields sitting 0.4-2.7bp cheaper. Eurodollar futures sit unch. to -1.0 tick through the reds.
• JGB futures have faltered, albeit in a more gradual manner than their peers, and now trade at 150.98, 14 ticks below last settlement. Cash JGB yields sit higher across a steepened curve. The BoJ left all purchase sizes unch. at today's round of 1-10 Year Rinban ops.