AUSSIE BONDS: Twist-Fattener, RBA Gov Speech Due, Jun-35 Supply Tomorrow

In today's Asia-Pac session, TYM5 is currently at 111-19+, 0-09 from closing levels, after trading as high as 111-25 early on equity market weakness.

• Block Buy: +4,050 of TYM5 at 111-17+, post-time 04:08:07 GMT. The contract has traded higher since.
• Cash US tsys are 2-4bps richer, with a flattening bias after yesterday’s robust bull-steepener. The US 10-year is currently 3.8bps lower at 4.173%, after hitting a low of 4.15% earlier.
• Today’s key release is January JOLTS job openings, with February CPI on Wednesday.

• Opening at US$2,888.71Gold jumped in the afternoon as equity volatility drove markets in the region.
• Reaching $2,900.50 briefly, gold then backed off to be at $2,897.76
• Gold is usually highly correlated to negative market sentiment and displays it’s ‘safe-haven’ status yet overnight, gold’s drivers appear mixed.
• With global market volatility elevated due to the implementation of tariffs and their potential impact on the US and Global economies, equity markets are down and bond yields rallying gold resumed its year long rally today and  with expectations that this volatility is likely to continue, it is an environment where gold usually does well.   
• The overnight move has moved back above the 20-day EMA of $2,892.24.
• CFTC data shows that money managers have cut their bullish gold bets to the least in nine weeks, a sign that profit taking is the key driver of the downward pressure on prices.