T-Notes Fade Initial Uptick

T-Notes pared gains after a brief spell of modest strength, which saw them have a look above Wednesday's highs and top out at 139-20. The contract has stuck to a 0-03 range and last trades -0-00+ at 139-17, with e-minis grinding into negative territory. Little of note on the news wires, with focus on continued barb trading between the U.S. and China, as well as unrest surrounding violence in several U.S. cities. Cash Tsy yields are unch. to marginally higher across the curve. Eurodollar futures last seen -0.5 to +0.5 tick through the reds.

• JGB futures have picked up a bid and last trade +14 at 151.88, as the contract reacted to overnight market moves & a confirmation that Chief Cabinet Sec Suga has joined the race for Japanese prime minister. Cash JGB yields sit lower, with 2s & 3s outperforming. BoJ's Kataoka speaks at typing; later in the day, focus turns to 30-Year JGB supply, due later today.
• In Australia, YM +0.5 & XM +3.5 at typing. Cash curve has flattened, driven by overnight impetus; yields last seen +0.5bp to -4.0bp. Bills last trade unch. to +2 ticks through the reds. Treasurer Fydenberg pointed to the government's plans to bring tax cuts forward. Elsewhere, Australia reported a narrower trade surplus than forecast.