A tame Asia-Pac session for core.......>

BOND SUMMARY: A tame Asia-Pac session for core global FI. Cash Tsy yields sit

0.4-2.4bp richer at typing, as the curve bull flattens and U.S. equity index

futures tick lower. T-Notes have held a tight range, on low volume, +0-02+ at

139-04+. Eurodollar futures sit unchanged to +1.0 through the reds.

- JGB futures have virtually unwound their overnight losses after an early look

lower, last -3. A decent 2-Year auction helped as the tail tightened and cover

ratio hit the highest level seen at a 2-Year auction since August last year. Low

price also topped dealer exp. It looks like FX hedged yield pickups from abroad

outweighed any worry re: greater supply needs to finance the supplementary

budget, aiding demand. Participants may have also looked to comments from

Dai-ichi Life, made late Wednesday, as the insurer noted that it plans to

increase its holding of yen bonds in the current fiscal year after its holdings

fell in the 12 months to the end-March.

- Aussie bond futures happy to hold a tight range after steepening in SYCOM

trade, with long end losses limited as the RBA chose to focus on the longer end

of its current ACGB holdings in today's purchasing Ops. YM -0.5, XM -2.0.