Tight Start, Debt Supply Eyed

It's been a tight start to the session for T-Notes, which have stuck to a 0-02 range thus far and last trade +0-00+ at 132-20. Cash Tsy yields sit marginally shy of neutral levels as we type. Eurodollar futures trade unch. to -0.5 tick through the reds. Little to write home on the news wires so far, with Chinese inflation data providing the main point of note on regional data docket.

• JGB futures trade at 151.42, 2 ticks above last settlement, ahead of today's round of 10-Year JGB supply. Cash yields are marginally mixed, with 40s underperforming. Japanese household spending rose more than expected in March, while the summary of opinions from the BoJ's April MonPol meeting came and went.
• The AOFM will sell A$100mn of 1.00% 21 Feb '50 linkers at the top of the hour in the first auction of that bond since 2019. Elsewhere, the pricing of a new semi-gov't bond is expected today. ACGB yields are little changed as we type, last sit -0.5bp to +0.7bp across the curve. YM last +0.5, with XM unch. Bills trade unch. to +1 tick through the reds. Australian weekly payroll data hit the wires later today, while Treasurer Frydenberg will deliver the 2021/22 Budget this evening.