T-Notes Marginally Softer, ACGB Supply Up Today

A gentle downtick in early Asia-Pac trade has allowed T-Notes to move away from levels printed Thursday when speculation surrounding U.S. Pres Biden's tax plan gained traction. The contract last operates +0-01+ at 132-19, with cash Tsy curve bear steepening at the margin. Eurodollar futures trade unch. to +0.5 tick through the reds. The space has paid little attention to reports that 3 rockets hit a U.S. military base at Baghdad airport.

• JGB futures trade at 151.61, 2 ticks above last settlement, following a slightly firmer re-open. Cash JGB yields sit slightly lower across the curve, save for the super-long end. Japan's CPI figures generally matched expectations, with the core metric printing at -0.1% Y/Y. Flash Jibun Bank PMIs are due shortly.
• ACGB yields trade higher across the curve, with 10s underperforming as we type. YM last sits -1.5, with XM -2.5. Bills last seen unch. to 2 ticks lower through the reds. Preliminary readings of Australian Markit PMIs indicated acceleration in the rates of expansion, with both M'fing & Services gauges hitting record highs. The AOFM will auction A$800mn of ACGB Apr '25 at the top of the hour, before publishing the weekly issuance slate.