T-Notes Ease Past Tuesday Low As E-Minis Creep Higher

T-Notes have slipped through overnight lows as the NASDAQ has led e-mini contracts higher after blockbuster headline readings in the earnings reports from Alphabet & Amazon. At typing, T-Notes trade -0-02 at 136-28. Cash Tsy curve has undergone mild bear steepening, with yields last seen unch. to +1.5bp. Eurodollar futures run unch. to -0.5 tick through the reds. U.S. Tsy Sec Yellen has continued to push for sizeable fiscal stimulus.

• JGB futures have wavered and now change hands at 151.72, 3 ticks shy of settlement. Cash JGB yields sit marginally lower, with super-long end outperforming. Final readings of Japanese Jibun Bank Services & Composite PMIs were revised higher, but remained in contractionary territory. Elsewhere, the BoJ reduced the size of its 1-3 Year JGB purchases to Y400bn from Y450bn and cut 3-5 Year purchase amount to Y370bn from Y420bn.
• Australian YM trades +0.5 tick, while XM sits -1.0. Cash ACGB curve has twist steepened a tad, with yields trading -0.5b bp to +1.3bp. Bills trade -1 to +2 ticks through the reds. In local data, building approvals surged well above expectations in Dec. RBA Gov Lowe is speaking to the National Press Club of Australia, as we await Chinese Caixin Services & Composite PMIs. On the supply front, the AOFM auctioned A$1.5bn worth of ACGB Dec '30.