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A mundane Asia-Pac session for Tsys....>

BOND SUMMARY: A mundane Asia-Pac session for Tsys with T-Notes in a tight range,
last -0-01 at 129-18, with yields 1.0-1.6bp lower across the curve. The only
point of real note came in the form of a 20.0K TYZ9 130/131/132 call tree buyer.
Eurodlr futures unch.-1.0 tick lower thru the reds.
- Aussie bonds were bid on the back of NAB adopting a more aggressive RBA call
(cuts in both Oct & Dec) after Citi joined the Oct cut camp earlier in the day.
YM +3.5, XM +3.0. Bills unch.-3 ticks higher thru the reds. Growing calls for
RBA easing have manifested themselves in the AU/U.S. 10-Year yield spread, now
at ~-75.0bp, back from the ~-50.0bp level seen a couple of weeks ago.
- JGBs struggled after the BoJ cut the size of its purchases across the 5-25+
Year JGB zone in an effort to steepen the yield curve, although futures quickly
regained some poise. The contract then managed to edge higher in early PM trade,
last -4 ticks, on the back of a moderation in the offer to cover ratios in the
Rinban, perhaps on exp. of BoJ easing next month, although average yields were
notably wider in today's ops. Offer to cover ratios as follows: 5-10 Year 1.74x
(prev. 1.89x), 10-25 Year 1.55x (prev. 3.03x), 25+-Year 3.11x (prev. 4.31x),
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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