U.S. Fiscal Rhetoric Applies Mild Pressure To Core FI

T-Notes have remained under pressure after the latest round of relatively encouraging fiscal comments from U.S. House Speaker Pelosi, outlined earlier. The contract has ebbed through yesterday's low and last trades -0-02 at 138-20+. A degree of bear steepening has crept into cash Tsy space, with yields last seen 0.4-1.8bp higher. Eurodollar futures trade -0.5 to +0.5 tick through the reds.

• JGB dipped from the off, before ticking away from their session low of 152.05. The contract sits at 152.09, 4 ticks shy of last settlement at typing. Cash JGB yields runs very marginally steeper. Focus moves an appearance from BoJ policymaker Sakurai after the BoJ left the sizes of its 1-10 Year JGB purchases unch.
• Down Under, YM -1.0 & XM -2.5, as the impetus from U.S. Tsys has outweighed the impact of today's ACGB coupon payments, a strong ACGB 21 Dec '30 auction and prospect of deeper RBA easing. Cash ACGB curve runs steeper, with yields sitting -0.2bp to +3.1bp. Bills trade unch. to -1 tick through the reds, unfazed by the fact that 3-month BBSW dropped to a record low in the aftermath of yesterday's speech from RBA's Kent. Elsewhere, Australian flash retail sales fell 1.5% M/M in Sep.