Tight Ranges Evident In Core FI

T-Notes stuck to a 0-02 range overnight, last dealing -0-00+ at 132-08, while cash Tsys are little changed to ~1.0bp cheaper across the curve. Fed Governor Waller outlined his "very positive outlook," telling BBG that "the unemployment rate would have to drop fairly substantially, or inflation would have to really continue at a very high rate, before we would take seriously a rate hike in 2022, but I'm not ruling it out." On the corporate issuance front both Softbank & Qatar Petroleum launched $-denominated multi-tranche rounds of issuance.

• There was not much in the way of local follow through in the wake of Tuesday's tweaks to the BoJ's Rinban purchases for thew coming quarter, with most of the cash JGB curve sitting flat to a touch firmer on the day. 20s & 40s are the only major benchmarks that sit cheaper vs. Tuesday's closing levels at typing (to the tune of ~0.5bp). A reminder that most view the tweaks to the Rinban operations (including the release of a quarterly schedule) as a way of promoting the functioning of the JGB market, as opposed to a policy signal. Futures have held to a tight range, last printing -2 vs. yesterday's settlement level, gradually unwinding the overnight downtick as we moved through the day.
• Aussie bond futures are back from their early Sydney highs in what has been a limited session, YM-0.5., XM -0.5. The cash ACGB curve has seen some light twist flattening, with the long end sitting ~1.0bp richer on the day at typing. Alice Springs, NT was the latest area to enter a "precautionary" lockdown, while more broadly, the new local COVID case count numbers remain limited in the grander scheme of things, although that hasn't stopped some of the sell-side names with hawkish calls re: next week's RBA decision from tempering their calls a little (or at least warning on the prospects of an RBA taper). Month-end index extension projections are light (AusBond Composite at a mere +0.034 Years), with desks flagging expectations for a lack of support on that front.