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A slightly warmer risk backdrop has....>

BOND SUMMARY
BOND SUMMARY: A slightly warmer risk backdrop has provided some pressure to the
core FI markets that are open, with the continuation of the Japanese holiday
meaning that cash Tsy markets will be closed in Asian hours through Wednesday.
- T-Notes are hovering a little above their Monday trough, last -0-04+ at
138-26+ after yesterday's corporate supply deluge and the Tsy's record quarterly
issuance outline resulted in twist steepening of the curve. Eurodollar futures
sit unchanged to 1.0 tick lower through the reds.
- The Aussie bond curve has steepened given the dynamics in equities and U.S.
Tsys, although volumes haven't been substantial, with participants side-lined
ahead of the latest RBA decision. YM -0.5, XM -3.0. Little in the way of market
reaction to the latest data from the ABS, which pointed to a worsening labour
market and wage backdrop as of April 18, which of course provided no surprise.
Bills sit 1 tick lower to 1 tick higher through the reds.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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