A sedate overnight session for Tsys,...>

BOND SUMMARY: A sedate overnight session for Tsys, with e-minis pushing to fresh

session highs at typing, while little Tsy market reaction was seen on the back

of U.S. President Tump's latest round of Chinese sabre rattling, nor on the back

of the Chinese PMI data. T-Notes last +0-03 at 139-02, yields 0.8-1.7bp richer

across the curve, 7s outperform. A reminder that month-end extensions are

notable, while rebalancing estimates favour flows into bonds and out of

equities.

- A sedate session for JGB futures, with liquidity thinned around the Golden

Week holiday period. The contract held a tight range, last +4, with bulls unable

to force a break of 153.00, and month-end extension estimates on the lower end

of average, allowing the cash curve to twist steepen at the margin in the

afternoon. Swap spreads are mixed. Little to note outside of the ongoing debate

re: the extension of the national state of emergency, downbeat rhetoric from PM

Abe and weak domestic data.

- In Australia, the brief, limited weakness for XM on the lack of RBA purchases

more than reversed. YM last unchanged, XM +2.5.