A modest risk-off feel has gradually...>

BOND SUMMARY: A modest risk-off feel has gradually crept into the developed FI

space, as participants remain wary of the slowing world economy after the IMF

cut its global growth outlook yesterday.

- T-Notes last trade +0.03 at 123.23+, just shy of session highs. U.S. cash Tsy

yields are sitting 1.1-1.8bp lower across the curve, with 10-year yield last at

2.485%. Eurodollar contrades are trading 0.5 tick lower to 1.5 tick higher

through the reds.

- JGB futures last seen at 152.97, 9 ticks above settlement. Cash JGB yields are

trading 0.3-0.9bp lower across the curve. Muted reaction was noted to the

release of Japanese PPI & core machine orders. The Nikkei 225 has underperformed

from off and last trades ~0.7% lower.

- Aussie bond yields last trade 3.8-4.4bp lower across the curve. YM last sits

4.5 ticks higher at 98.650, with XM 4.0 ticks higher at 98.135, while YM/XM

trades 1.5 tick higher at 52.00. Bills are seen 1-4 ticks better off. Worth

noting the AOFM sold A$900mn of the 2.75% 21 Nov 2029 Bond today, drawing the

cover ratio of 2.9056x.