T-Notes Inch Higher Amid Apparent Dip Buying

T-Notes have moved away from Wednesday's lows and last trades +0-02 at 138-25, with regional players seemingly happy to buy the latest dip driven by U.S. fiscal matters. The Pence-Harris debate has kicked off and draws attention at the moment. Cash Tsy yields sit below neutral levels, with mild curve flattening evident. Eurodollar futures running -0.5 to +0.5 tick through the reds.

• JGB futures went bid from the off, but have eased off after topping out at 151.84. The contract trades at 151.79, 6 ticks shy of settlement as we type. Cash JGB yields are marginally mixed, with 3s outperforming in the space. Japan's BoP current account surplus expanded more than expected and focus moves to the Eco Watchers Survey and 5-Year JGB supply. Worth noting the latest round of comments from BoJ Gov Kuroda, who said that Japan's economy will follow an improving trend, but the pace of improvement will be only moderate.
• In Oz, YM -1.0 & XM -3.0 at typing. Cash ACGB yields trade 0.5-3.1bp higher across a steeper curve. Bills sit unch. to -1 tick through the reds. Budgetary matters continue to provide interest, with state budget releases due in the coming days.