PHP: USD/PHP Back Under 57.00, Recent Ranges Holding

ACGBs (YM -0.5 & XM -1.0) are little changed on a data-light session.

• Cash US tsys are flat to 1bp cheaper, with a steepening bias, in today's Asia-Pac session after yesterday's twist-flattener.
• Cash ACGBs are 1bp cheaper with the AU-US 10-year yield differential at +2bps.
• The latest ACGB Mar-36 auction saw strong demand, with the weighted average yield coming in 0.21bps through prevailing mid-yields, according to Yieldbroker, continuing the trend of firm pricing at recent ACGB auctions. However, the cover ratio collapsed to 3.3111x from 4.45x.A$1000mn of the 3.00% 21 November 2033  bond is planned for Friday.
• The bills strip is weaker, with pricing -1 to -3.
• RBA-dated OIS pricing is little changed across meetings today. A 25bp rate cut in August is given a 100% probability, with a cumulative 63bps of easing priced by year-end (based on an effective cash rate of 3.84%).

The BoJ offers to buy a total of Y885bn of JGBs from the market:

• Y100bn worth of JGBs with <1 Year until maturity
• Y325bn worth of JGBs with 1-3 Years until maturity
• Y325bn worth of JGBs with 3-5 Years until maturity
• Y135bn worth of JGBs with 10-25 Years until maturity

At the Tokyo lunch break, JGB futures are weaker, -12 compared to settlement levels.

• (MNI) Japan’s inflation-adjusted real wage, a key gauge of household purchasing power, remained in negative territory for a sixth consecutive month in June but narrowed to -1.3% from May’s 2.6% decline, preliminary data from the Ministry of Health, Labour and Welfare showed Wednesday.
• Bank of Japan Governor Kazuo Ueda said last week he expects real wages to improve toward the end of the year, though it remains difficult to predict when they will turn positive. The sharp wage increases agreed during spring negotiations are gradually being reflected in wage data through July, helping to reduce the negative real wage gap.
• Cash US tsys are flat to 1bp cheaper, with a steepening bias, in today’s Asia-Pac session after yesterday’s twist-flattener.
• Cash JGBs are slightly mixed across benchmarks, with a flattening bias. The benchmark 10-year yield is 0.5bp higher at 1.477% versus the cycle high of 1.616%.
• Swaps have also twist-flattened, with rates1bp higher to2bps lower. Swap spreads are mixed.