The initial bout of risk-off flows.....>

BOND SUMMARY: The initial bout of risk-off flows has unwound somewhat.

Yesterday's monetary policy decision & rhetoric from the Fed remains under

scrutiny, as regional news/data flow has been relatively thin. The Fed has

extended its QE programme & forecast that interest rates will remain near zero

at least until the end of 2022, while calling YCC an "open question". T-Notes

were bid from the off and extended gains past yesterday's highs. They have ebbed

off best levels and last trade +0-07+ at 138-23. Some mild flattening has been

observed in cash yield curve. Eurodollars sit unch. to +1.5 tick thru reds.

- JGB futures reopened on the front foot, but have shaken off initial gains

since. The contract trade at 152.08, 15 ticks above settlement Yields are still

lower across the curve. Focus turns to an enhanced liquidity auction for

off-the-run 15.5-39 Year JGBs, coming up today.

- In Australia, YM +1.5 & XM +8.5 (off highs), with yield curve subject to bull

flattening in cash trade. Bills trade -1 to +2 ticks through the reds. The RBA

skipped bond purchase ops again, with 3-year yield currently at 0.252% (target

is 0.25%). Australian consumer inflation exp. slipped to +3.3% from +3.4%.