A much quieter session in bonds after the.....>

BONDS: A much quieter session in bonds after the volatility yesterday, UST's

seeing a slight bid mid-way through the Asia session, last down 2 ticks at

121.13+ but off session lows of 121.04+ hit early in the session as UST's sold

off into the close, retracing most of the move higher on Monday/Tuesday.

- Aussie bonds have followed the move higher in UST's, though JGB's have seen a

very tight range, last down 8 ticks at 150.40. 

- The BoJ bought 1-10 Year JGB's and kept all purchase sizes unchanged. While

the bid in bonds yesterday did pull yields away from their recent highs, the

10-Year yield last at 0.081% and retreating from the 0.10% threshold, JGB's had

some immunity from the volatility on the expectation that the BoJ are prepared

to intervene when necessary. The bounce in Japanese stocks is keeping JGB's

subdued as the Nikkei recovers from the biggest sell off since late 2015.