A limited session for core FI..........>

BOND SUMMARY: A limited session for core FI overnight, with little in the way of

outright headline drivers for the space to latch onto.

- T-Notes last trade 0-00+ lower at 127-15+, with the curve bull steepening at

the margin. Eurodlr futures trade 0.5 tick lower to 1.0 tick higher through the

reds. Flow wise, the highlight was 40.0K of the 0EN9 98.250 puts blocked at

0.0150 vs. 40.0K of the 0EQ9 98.250/98.125 put spread blocked at 0.0500. A

source noted that the 0EN9 98.250 puts were sold vs. the 0EQ9 98.250/98.125 put

spread as the package traded for 0.0350.

- AU bond futures ticked to unch. on the back of a dip in the latest NAB biz

confidence reading, but the employment sub-metric edged higher, extending on the

uptick from the -ve read in April. YM & XM both 0.5 tick lower than settlement

last, with YM/XM at 40.5 ticks. Bills unch.-1 tick lower thru the reds.

- JGB futures trade 4 ticks worse off on the day. The cash space has seen the

curve twist flatten, with the highlight being a fairly non-descript auction for

5-Year paper, providing vary similar metrics to last month's offering.

- German FI futures mixed; Schatz +0.5, Bobls -3.0, Bunds -13.