A combination of stronger than exp.....>

BOND SUMMARY: A combination of stronger than exp. Japanese GDP data (albeit with

a worrying trade breakdown) coupled with a surprise win for the incumbent party

in the Australian federal election (alongside speculation that it may be able to

form a majority) has weighed on the core global bond space in early Asia-Pacific

trade, negating trade war worry.

- T-Notes last -0-03 at 124-12+, U.S. 10-Year cash Tsy yields last 2.405%, with

the curve bear flattening at the margin. Eurodollar futures trade 0.25 tick

higher to 1.5 ticks lower through the reds.

- Aussie bond futures also trade heavy, YM last -5.5 ticks, with XM -4.0 ticks.

YM/XM trades at 46.0 ticks, with the cash equivalent at 43.1bp. Bills trade 4-6

ticks lower through the reds.

- JGB futures trade 11 ticks lower, but well off the GDP reaction lows. The cash

space has seen some modest bear flattening in play.

- German FI futures sit a touch lower; Schatz -0.5 tick, Bobls -5.0 ticks, Bunds

-15 ticks.