T-Notes Trim Initial Uptick

T-Notes have ebbed off the session high at 139-20 printed just after the re-open in reaction to the news that the promising AstraZeneca/Oxford University phase 3 trial of a Covid-19 vaccine has been put to a halt after the detection of an unexplained illness in one participant. Broader unwinding of initial risk-off flows has applied some pressure to T-Notes, dragging them back into yesterday's range. The contract deals +0-03+ at 139-16 at typing. Cash Tsy curve has bull flattened, yields sit 0.2-1.7bp lower at typing. Eurodollar futures trade unch. to +0.5 tick through the reds.

• JGB futures have wavered, sticking to a fairly tight range, and last trade +10 at 151.94. Curve runs flatter in cash trade. Flash machine tool orders and 6-Month Bill supply figure on Japan's docket today.
• In Australia, YM +0.5 & XM +6.5. Bull flattening evident also in cash ACGB space, with yields sitting 0.2-7.7bp lower as they play catch-up with overnight moves in Tsys. Bills last seen unch. to -1 tick through the reds. The RBA offered to buy A$2.0 worth of ACGBs (eligible maturities: Apr '23 & Apr '24). Little market reaction to a jump in Westpac Consumer Confidence (93.8 vs. prev. 79.5). Focus moves to Australian housing finance data and Chinese inflation figures, due shortly.