T-Notes Ease Off As Initial Impetus Loses Steam

T-Notes started the session with an uptick, carried by the impetus linked to a stalemate in U.S. fiscal negotiations. The move lost fuel at 139-16 and the contract turned its tail, erasing earlier gains as gold extended its rout. T-Notes trade +0-01+ at 139-09+ as we type, just above session lows. Cash space acted on similar dynamics, with yield curve undergoing some bear steepening. Eurodollar futures last trade 0.5-1.0 tick higher through the reds. Nothing much in the way of market reaction to the latest briefing with U.S. President Trump, who confirmed that Moderna struck a $1.5bn deal with his administration to supply 100mn doses of experimental Covid-19 vaccine. Domestic CPI data and Fedspeak headline in the U.S. today.

• JGB futures wavered, last trades -17 ticks at 151.83. The contract may have been dented by Japanese equity benchmarks, which bucked regional trends and registered gains. Yields sit higher across the curve, save for 2s and 5s. The MoF held an enhanced liquidity auction for 15.5-39 Year JGBs.
• Aussie bond futures eased off; YM -0.5 & XM -5.0. Bear steepening was also evident in cash trade, with yields last seen unch. to 7.7bp higher. Bills trade unch. to -2 ticks through the reds. The space defied a bleak Westpac Consumer Confidence reading, and marginally below-forecast wage price indices released out of Australia. The supply of ACGB 0.25% 21 Nov '25 also came and went. Elsewhere, the RBA offered to buy A$2.0bn (prev. A$1.0bn) of ACGBs today, eligible maturities were Apr '23 & Apr '24 (as prev.).