T-Notes Rangebound, XM Dips After AOFM Announcement

T-Notes had a brief look above overnight highs, but have faded the move since and last trade +0-02 at 138-07. The contract has stuck to a 0-03+ range thus far. Cash Tsy yields are little changed across the curve. Eurodollar futures run unch. to -0.5 tick through the reds.

• JGB futures have edged lower, even as the Nikkei 225 has lost ground, and last trade at 152.11, 11 ticks above last settlement. Cash JGB yields sit slightly below neutral levels. Local coronavirus situation continues to provide interest. PM Suga said that experts are not advising introducing a state of emergency now, but NHK reported that Japan could create a new post for coordinating nationwide efforts to contain infections.
• In Australia, YM unch. & XM +1.5 as we type. The latter took a hit as the AOFM announced next week's syndicated tap of ACGB 2.75% 21 May 2041, which will be up to A$6.0bn in size. Cash curve twist flattened, but is now off early flats. Bills trade -1 to +1 tick through the reds. The auction of ACGB Apr '27 was solid enough, with the cover ratio easily topping 5.0x