U.S. Tsy, JGB Yield Curves Bull Steepen A Tad Amid Festive Season Lull

Market activity remains limited in thin year-end trade, with cash U.S. Tsy & JGB curves subject to some mild bull steepening. Australian markets re-open after holidays.

• T-Notes blipped higher at the re-open but have stabilised since and last trade +0-02 at 130-21+. Cash U.S. Tsy curve runs marginally steeper, with yields last seen 0.7-1.1bp lower. Eurodollar futures trade -0.5 to +1.5 tick through the reds. Wholesale inventories and 7-year Tsy auction headline the U.S. docket on Wednesday.
• JGB futures have traded sideways, the contract now sits at 151.87, 2 ticks above last settlement. Cash JGBs have gained a tad, while the yield curve has undergone some mild steepening.
• Australian markets re-open after a four-day Christmas break. Aussie bond futures have crept higher, YM sits +2.0 and XM +3.5 at typing, at/near session highs. Cash ACGB yields trade 1.8-4.5bp lower across a flatter curve. Bills trade unch. to +3 ticks through the reds.