U.S. Tsy/Fed Matters Eyed

T-Notes have stuck to a tight range, steadying after an upswing seen in NY/Asia crossover on the back of aforementioned Tsy/Fed matters. Elsewhere, headline and data flow has been few and far between thus far. The contract trades +0-07 at 138-18+, right at the mid-point of its range in the Asia session. Cash Tsy curve has flattened, with yields sitting unch. to -1.5bp. Eurodollar futures run -0.25 to +1.0 tick through the reds.

• JGB futures re-opened higher and continue to cling onto gains, last trading +7 ticks at 152.25. The contract peeked above Oct 16 high of 152.26, but failed to test Sep 24 high & bull trigger of 152.29. Cash JGB yields trade lower across the curve, which runs a touch steeper. Japanese CPI figures matched expectations, while flash Jibun Bank PMIs showed a slight acceleration in contraction across all three gauges. Focus moves to 3-Month Bill supply and the latest liquidity enhancement auction for off-the-run 1-5 Year JGBs.
• The AOFM published a vanilla issuance slate for next week and the ACGB space has been unfazed. YM trades +0.5 & XM sits +3.5 having stabilised after an early uptick. Cash ACGB curve has bull flattened. Bills trade -1 to +1 tick through the reds.