T-Notes Turn Heavy, Cash Curve Bear Flattens

T-Notes ground lower through the Asia-Pac session, even as a slew of weak earnings reports from U.S. tech giants this week generated weakness in NASDAQ 100 e-minis, which kept a lid on local equity-index futures. The move may have represented a correction of yesterday's dynamic advance, driven by a "dovish hike" from the ECB and underwhelming U.S. core PCE & durable goods data. A sudden, now mostly unwound post-BoJ drop in JGBs may have added pressure to core FI peers.

• T-Notes last trade -0-01 at 111-21, hovering just above 111-19 session low. Eurodollar futures run 1-8 ticks higher through the reds. Cash Tsy curve bear flattened, with yields last seen 0.9-3.1bp higher. The 5-Year/30-Year sector has moved closer to inversion territory, as the relevant spread sits at less than 1bp.
• With participants digesting the BoJ's monetary policy statement and outlook report, focus turns to the upcoming press conference with Gov Kuroda.
• U.S. data highlights today include employment cost index, personal income/spending, pending home sales & final Uni. of Mich. survey.