T-Notes Peek Through Tuesday's Low Ahead Of FOMC, ACGB Supply Smoothly Digested

T-Notes had a brief look under Tuesday's low but have recovered since and last trade -0-02 at 131-28+. Cash Tsy yields are marginally mixed across the curve. Eurodollar futures sit +1.0 to -0.5 tick through the reds. All eyes are on the latest monetary policy decision from the FOMC today.

• JGB futures have edged higher and sit at 151.22, +3 ticks vs. settlement & off best levels (151.26). Cash JGB curve has undergone some mild twist steepening, as the super-long end lags. The latest round of 1-25 Year Rinban ops saw no changes to purchase sizes. Earlier, Japanese trade balance missed expectations as exports shrank more than forecast.
• ACGB curve has bear steepened, with yields last seen 1.0-3.5bp higher. YM trades -1.0 & XM -2.5, both are slightly heavy. Bills run -1 to +1 tick through the reds. A smooth passage of the supply of A$1.0bn of ACGB Jun '31 provoked no material reaction in the space. Elsewhere, the RBA offered to buy A$1.0bn of semi-gov't bonds with maturities of Mar '25 - May '28, excluding TCV Nov '25. The latest address from RBA Asst Gov Kent reaffirmed the well-known aspects of the Reserve Bank's monetary policy stance.