Treasuries Extend Rally

U.S. Treasuries continue to push higher as Asia-Pac participants come in, catching up with Thursday's market developments. Regional equity benchmarks have retreated on a negative lead from Wall Street, with Topix falling into correction. U.S. e-mini futures have slipped, which suggests that potential for further weakness in the equity space remains.

• Concerns over the implications of more aggressive policy tightening from the Fed, an underwhelming earnings report from Netflix and pessimistic musings surrounding Peloton all conspired against equity markets on Thursday, with familiar global geopolitical tensions simmering in the background.
• T-Notes trades +0-16 at 128-06+ as we type, hitting fresh session/one-week highs. Eurodollar futures run 1.5-8.0 ticks higher through the reds. The yield curve has shifted lower as cash trading re-opened in Tokyo, with the belly outperforming. Yields last sit 1.7-3.2bp lower, with 10-year yield now back below the 1.80% mark.
• The U.S. docket is fairly empty today, with the Fed in their blackout period ahead of next week's monetary policy decision.