U.S. Fiscal Stalemate, North Korean ICBM, Yuan Dynamics In Focus

Continued fiscal stalemate on the Hill & North Korea's newest ICBM have generated some light tailwinds to T-Notes, with focus also on the PBoC's decision to remove the 20% FX risk reserve ratio. T-Notes trade +0-02 at 138-28+ as we type, with cash Tsys closed due to the Columbus Day holiday in the U.S. Eurodollar futures trade unch. through the reds.

• JGB futures have picked up a bid and last trade at 151.97, 7 ticks above the last settlement, while the Nikkei 225 sits comfortably in negative territory. Cash JGBs generally sit below neutral levels (save for 40s), with the 7-10 sector outperforming. On the data front, Japanese PPI missed expectations, which was coupled with a surprise M/M increase in core machine orders. Flash machine tool orders take focus from here.
• In Australia, YM -0.5 & XM unch. at typing, with cash ACGB yields sitting -0.8 to +0.1bp across the curve. Bills trade unch. to -2 ticks through the reds.