Tight Start, Core FI Futures Edge Higher

T-notes trade +0-01 at 132-13, having edged higher in tandem with a light sell-off in e-minis at the start to the week, as participants assess the geopolitical issues centring on Russia & the slight easing of tensions surrounding Iran. Cash Tsy curve has bull flattened, yields sitting 0.2-1.4bplower & with the 7-10 sector outperforming. Eurodollar futures trade unch. to +0.5 tick through the reds. There is little in the way of tier 1 headline risk evident on the regional docket today.

• JGB futures have garnered some strength, looking above Friday's peak. The contract trades at 151.41 as we type, 5 ticks above last settlement. JGB yields trade slightly lower across the curve. Japan's trade surplus widened more than expected in March, which was underpinned by beats in both imports and exports. Focus turns to final industrial output & BoJ Rinban ops covering 3-5& 25+ Year JGBs.
• It has been a tight start to the session for the ACGB space. Cash yields sit -0.1bp to +0.8bp at typing. YM trades -0.5 & XM -0.5 after inching higher. Bills trade unch. to -1 tick through the reds. Australia formally opened the travel bubble with New Zealand today.