A recovery in risk appetite has........>

BOND SUMMARY: A recovery in risk appetite has pressured the core FI space in

early Asia-Pac trade, with U.S. equity futures edging higher, even as major

regional stock indices remain in negative territory. Worth highlighting that

today is very quiet in terms of data releases, while little fresh headlines have

hit the wires so far.

- T-Notes have dropped somewhat and last trade -0-03+ at 127-06. Cash Tsy yields

are trading 1.9bp to 3.0bp higher across the curve, with some bear flattening

apparent. Eurodollar futures are 0.5 tick higher to 2.0 ticks lower through the

reds. This comes ahead of the FOMC MonPol decision, due on Wednesday.

- JGB futures last seen at 153.51, 5 ticks below settlement, even as the Nikkei

225 has operated in the red so far. Yields are 0.3bp lower to 0.6bp higher

across the curve, with the super-long end outperforming.

- In Australia, Ym last trades 3.5 ticks lower, with XM 2.0 ticks worse off.

Aussie bond yields sit 2.7bp to 5.1bp higher, while the curve has bear

flattened. Bills are trading 3-5 ticks lower through the reds. Macquarie said

they now exp. the RBA to cut its cash rate to 0.5% by the end of 2021.