T-Notes Tick Away From Lows, JGB Futures Trim Initial Losses

T-Notes have edged away from lows and last trade -0-02+ at 132-17, with cash Tsy yields last seen unch. to -0.5bp across the curve. The space has shown muted reaction to the latest headline flow surrounding U.S. Pres Biden's Covid-19 policies. Eurodollar futures sit +0.25 to -0.5 tick through the reds.

• JGB futures (JBM1) dipped to 150.93 in early trade, but have recovered since and last trade at 150.99, 6 ticks shy of settlement. Cash JGB curve has flattened a tad, as the super-long end outperforms. BoJ chatter has continued to grab attention locally, with the press highlighting potential moves at next week's monetary policy meeting. The BoJ left the sizes of its 1-3, 5-10 & 25+ Year JGB purchases unchanged. On the data front, the MoF's BSI survey revealed that business conditions fell 4.5% Q/Q in Q1.
• In Australia, YMM1 -0.4 & XMM1 -3.2 as we type. Cash ACGB curve has twist steepened, with yields last seen -1.0bp to +7.1bp. Bills trade unch. to -1 tick through the reds. The AOFM has released its weekly issuance slate, see earlier bullets for details.