T-Notes Waver On U.S. Fiscal Matters; RBA Returns To Market

T-Notes continue to respect a 0-02 range, after wavering on the back of mild fluctuations in risk appetite, linked to U.S. fiscal matters. U.S. Pres Trump inspired participants to shed earlier caution, as he signalled the possibility of full federal funding of jobless benefits & suggested that Democrats are willing to resume fiscal negotiations with the White House. That being said, concerns over spiralling Sino-U.S. tensions and the global coronavirus situation continue to linger. Chinese inflation data provided little impetus, as both CPI and PPI printed just marginally above expectations. T-Notes last trade -0-00+ at 139-30, while cash Tsys are closed owing to a public holiday in Japan. Singapore is also off today, which will further limit regional liquidity. Eurodollar futures last seen unch. to -0.5 tick through the reds.

• In Australia, YM trades unch. & XM -3.0 as we type. Curve runs steeper in cash trade, with yields sitting -0.4bp to +3.2bp. Bills trade unch. to -1 tick through the reds. The RBA returned to the market, offering to buy A$1.0bn worth of ACGBs; eligible maturities were Apr '23 & Apr' 24.