U.S. Market Flow Dominates In Asia

A lack of tier 1 headline flow made for a relatively limited round of pre-FOMC Asia-Pac trade, at least range-wise, with block flow in the Tsy options space and screen-based flow in Eurodollar futures catching the eye (see earlier bullets for full details on those matters). Central bank meetings are at the fore this week, with the aforementioned FOMC decision headlining on Wednesday, while the upcoming Sino-U.S. summit in Alaska is set to bring about little in the way of tangible progress re: any of the well-defined areas of dispute. T-Notes held to a narrow 0-04+ range overnight, last -0-01+ at 131-29, while cash Tsys print unchanged to 1.0bp richer across the curve vs. closing levels, with some light bull flattening in play.

• JGB futures stuck to a tight range during the Tokyo morning, last +3. Local headline flow was light, with the latest round of BoJ Rinban operations seeing no change to the size of the purchases witnessed in each bucket.The 1-10 Year purchases saw upticks in offer/ratio vs. their prev. rounds of buying, although the moves in the respective metrics were minor, while the offer/cover ratio for the ops covering 10-25 Year JGBs moderated. The super long end of the curve unwound its early underperformance in the afternoon against this backdrop (even though the BoJ Rinban ops didn't go past the 25-Year tenor), with the curve a touch flatter at typing as a result.
• Aussie bond futures stuck to narrow ranges, YM -2.0, XM -3.0. The Q&A portion of RBA Assistant Governor Kent's latest appearance reaffirmed the Bank's well-known views on several key areas of monetary policy. Elsewhere, A$1.0bn of ACGB Jun '31 supply saw the average yield price ~0.6bp through prevailing mids at the time of supply, representing a smooth passage.