Trump Throws A Spanner In The Works

Activity has cooled after the Trump-inspired push higher, with T-Notes a little shy of best levels, last +0-01+ at 138-01, operating within a 0-04 range, while the light twist flattening of the cash curve has held, with 30s ~1.0bp richer on the day. Eurodollar futures sit unch. to +0.5 through the reds, with a 20K block seller of EDH1 providing the highlight on the flow side thus far.

• The broader offshore market dynamic and lack of impending long dated JGB issuance made for some outperformance for the longer end of the Japanese curve, although futures still held to a narrow range, last -1, with the belly of the cash curve experiencing some underperformance. There has been a lack of local news flow to drive matters.
• The Aussie curve pushed flatter in early Sydney trade, but the space has edged away from richest levels, with YM +1.0 and XM +3.0, as focus fell on the U.S. fiscal backdrop, not local data releases. 3-Month BBSW fixed at an all-time low of 0.010% today (we gave some colour on the matter yesterday). Bills sit -1 to +1 through the reds, running flatter vs. settlement.