Tight Asia Trade, Tsys Closed

U.S. Tsy futures and cash Tsy markets are closed.

• The modest overnight U.S. Tsy-driven weakness was unwound during today’s holiday-shortened Sydney session. This left YM +0.5 and & XM +1.5 at settlement, with nothing in the way of notable headline flow observed when it comes to sniffing out a driver for the move, which took place on low pre-Christmas volume.
• JGB futures lacked a clear sense of direction and closed -4, while cash trade saw most of the major benchmarks trade within -/+0.5bp of Thursday’s closing levels. The MoF confirmed its issuance plans for the next FY, which fell in line with suggestions that were made in source reports earlier this week. Meanwhile, the latest round of BoJ Rinban operations provided no real impetus for the space. Also note that the BoJ conducted its latest round of JGB repo operations, perhaps looking to remove worry re: any potential gyrations in the space between Christmas & the turn of the calendar year.