Tight Overnight Trade For Core FI

T-Notes have stuck to a narrow range in Asia-Pac trading, with downside limited, even with e-minis bid (NASDAQ 100 futures have tagged fresh all-time highs ahead of this week's earnings slate, which includes quarterly results from Apple, Microsoft & Facebook). The contract last deals -0-02 at 136-31, sticking to a 0-03+ range. Cash trade has seen some light bear steepening, with 30s sitting around 1.0bp cheaper than Friday's closing levels. On the flow side, further fresh TYJ1 downside exposure was seen, once again via the 138.00/133.50 risk reversal (this time hedged with 5.0K FV futures), with 30.0K lots of new Asia-Pac downside exposure via TYJ1 risk reversals established over the last week or so. Elsewhere, BBG sources pointed to a potential multi-tranche round of issuance from 7-Eleven, which could total ~$11bn.

• JGB futures consolidated within their overnight session range during Tokyo trade, operating in familiar territory, last +4 vs. Friday's settlement. Cash trade generally saw a light bid across the curve, with 5- & 10-Year JGBs seeing some light outperformance. There was little to go off for the space, with the size of the latest round of BoJ 1-10 Year Rinban operations left unchanged, while the offer to cover ratios of the operations provided nothing in the way of market moving impetus.
• In Australia, the broader round of muted core FI trade observed during Asia-Pac hours was compounded by the impending Australia Day holiday (which will be observed on Tuesday), leaving local bond futures to stick to the ranges that were established in the final overnight trading session of last week. YM unch., XM +1.5 last. Cash ACGB trade has seen some light bull flattening, with swaps generally wider across the curve.