U.S. TsysTread Water, JGBs Edge Higher In Asia

T-Notes are rangebound in the absence of notable news/data flow in Asia. The contract last deals unch. at 138-02+, sticking to a particularly tight 0-01 range thus far. Cash Tsy yields show little deviation from neutral levels. Eurodollar futures sit unch. to -0.5 tick through the reds.

• JGB futures have picked up a light bid, last trades at 152.17, 5 ticks above last settlement & hitting session highs. Cash JGB yields mostly sit a tad lower across the curve, with 2s outperforming. In local news, Kyodo reported that the latest Japanese supplementary budget will result in an additional Y22.4tn worth of JGB issuance. Focus moves to 6-Month bill supply and a liquidity enhancement for off-the-run 5-15.5 year JGBs.
• In Oz, YM trades little changed & XM trades +1.0 at typing. Cash ACGB yields sit -0.1bp to +1.4bp across the curve, with 30s lagging. Bills trade unch. to -2 ticks through the reds. The RBA's Dec MonPol meeting minutes reflected rhetoric heard recently from RBA Gov Lowe. Meanwhile, RBA's Kearns warned that "there is no doubt that the COVID-19 pandemic will be a test of banks."