Tight Ranges, AOFM Supply Applies Light Pressure

The pricing of the A$6.0bn tap of ACGB May '41 in Australia applied some light pressure to both U.S. Tsys and Aussie paper during Asia-Pac hours, with little in the way of broader macro headline flow to note.

• T-Notes trade -0-01+ at 137-31+ last, with the contract operating within a 0-05+ range. The cash curve has seen some light twist steepening on the back of the aforementioned ACGB pricing, after light bull flattening was seen on the relatively limited downtick in e-minis during early Asia dealing.
• The Aussie futures curve holds steeper on the back of the aforementioned ACGB pricing from the AOFM, with YM -1.5 and XM -6.0. Cash trade sees underperformance for the 10-15 Year sector,
• JGB futures have held to a narrow range in Tokyo dealing, last -1, with the highlight there being the latest round of BoJ Rinban ops covering 1-10 Year JGBs. The size of the purchases across that zone of the curve remained unchanged, with little in the way of notable movements in the offer/cover ratios.