Tight Ranges For Core FI In Asia

T-Notes clung to a tight 0-03+ range in Asia-Pac hours, with a lack of notable macro news headlines and market flow evident. The contract prints +0-02+ at 134-07 on volume of ~66K ahead of European hours. The major cash Tsy benchmarks sit unchanged to 1.0bp cheaper across the curve. Looking to Thursday's U.S. docket, weekly jobless claims data, the latest Philly Fed survey and 30-Year TIPS supply will be eyed.

• Aussie bond futures initially drew support from an uptick in the new COVID case count in Victoria, as well as another record high in NSW's daily case count. The latest Australian monthly labour market report was skewed by the sample period (mid-July) which provided a much more optimistic round of releases than the current reality reflects (notably, a fresh lockdown in Victoria has gone into play since then). The fact that the sample period caught Victoria emerging from a lockdown resulted in a surprise uptick in headline employment (+2.2K), which when combined with the fall in participation resulted in a downtick in the unemployment rate. Hours worked were -0.2% in the month, but once again skewed by the sample dynamics, with much of the headwinds in NSW offset by the sampling issues outlined above.
• JGB futures held a narrow range and last trade -4, with the major cash JGB benchmarks little changed across the curve. There wasn't much change in the underlying dynamics witnessed in the most recent off-the-run 15.5- to 39-Year JGB liquidity enhancement auction vs. the prior offering.