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T-Notes drew light support from the....>

BOND SUMMARY
BOND SUMMARY: T-Notes drew light support from the pullback from best levels in
Chinese equities, as Chinese state media pushed for rational investing.
Sino-U.S. tensions remain evident, although market continues to look through the
matter, at least until any tangible signs of notable escalation come to the
fore. Contract last +0-03+ at 139-03, yields 0.3-1.0bp richer across the curve.
- JGB futures built on their overnight gains, last +14, with a solid round of
30-Year supply seen. Still the 2-5 Year sector continues to outperform. The sway
of an attractive ASW entry point and the lure of fresh paper via primary
issuance (indeed at at the most attractive outright levels seen since March '19)
drew buyers in at auction, despite the risk of ongoing curve steepening being
well and truly present. The cover ratio recovered to print at the highest level
seen since around the middle of '19, after hitting the lowest level seen at a
30-Year auction since '16 last time out. The tail tightened, with the low price
topping dealer estimates. Elsewhere, domestic spending and wage data was soft.
- Aussie bonds a touch flatter, YM unch., XM +2.0 ahead of today's RBA decision,
with worries re: a broader lockdown in the state of Victoria evident.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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