AUSSIE BONDS: Cheaper, Fedspeak Returns Later Today, Light-Local Calendar,

TYM5 is 110-12, +1-02 from closing levels in today's Asia-Pac session.

• Cash US tsys have extended yesterday's decline during the Asia-Pac session. The sell-off reflects growing concerns that China may retaliate against tariffs by offloading US assets, including US tsys.
• Alongside the steepening of the curve, interest-rate swaps have extended their recent extreme outperformance of US tsy securities as traders sought to avoid costs associated with holding bonds.
• Cash US tsys are currently trading 2-17bps cheaper across benchmarks, with the curve steeper.
• Yesterday, Trump officials confirmed the 104% tariff on China went into effect at noon. Concurrently, China vowed to "fight to the end".
• On the local front, the focus turns to the March FOMC minute release at 1400ET today, CPI on Thursday and PPI on Friday morning.
• Reminder, banks kick off the latest earnings cycle this Friday with Bank of New York Mellon, Wells Fargo & Co, JPMorgan Chase and Morgan Stanley reporting.

• RES 4: 120.000 Psychological round number          
• RES 3: 119.960 High Apr 7          
• RES 2: 119.594 76.4% retracement of Monday’s high-low range  
• RES 1: 119.368 61.8% retracement of Monday’s high-low range                                    
• PRICE: 119.180 @ 05:42 BST Apr 9  
• SUP 1: 118.410/117.971 Low Apr 7 / 20-day EMA       
• SUP 2: 117.680 Low Apr 1    
• SUP 3: 117.410 Low Mar 27 
• SUP 4: 117.080 Low Mar 25 and a key short-term support    

Bobl futures have pulled back from their recent highs - a correction. Last week’s gains resulted in a break of key resistance at 119.040, the Feb 28 high. This strengthens bullish conditions and signals scope for a continuation. The focus is on the 120.000 handle next. The contract is overbought, a deeper pullback would allow this condition to unwind. Initial firm support lies at 117.971, the 20-day EMA. 

• Gold’s few uncertain days may be behind it as the rally began today as equities retreated.    
• As tariff headlines abounded and having opened at US$2,984.58 gold rallied in the Asian trading afternoon back above $3,000 to be $3,009.00
• The White House has said that it will be pursuing tariffs of up to 104% on Chinese goods whilst Chinese Premier Li said that his country had ‘ample tools’ to “fully offset” the tariffs.
• Whilst gold enjoys ‘safe haven’ status amongst investors, in times of high volatility investors seek liquidity, something gold does not exhibit.
• Chinese investors put a record 7.6 billion yuan into gold-backed exchange-traded funds last week, seeking safety amid trade war tensions.
• Gold appears to be the only safe haven at present again as even treasuries are getting caught in the cross fire today.