A tight session for T-Notes............>

BOND SUMMARY: A tight session for T-Notes overnight, with the contract sticking

to a narrow range, last -0-03 at 139-13, with yields little changed across the

curve. Analysts are becoming increasingly wary re: the potential for convexity

hedging flows if the lower end of the recent 10-Year yield range is broken

(~0.54%).

- JGB futures held a tight range, with the cash curve twist steepening. The BoJ

left the size of its 1-3, 5-10 & 25+ Year Rinban ops unchanged, with the 1-3 &

5-10 Year ops seeing steady offer/cover ratios and tighter spreads, while the

25+ Year ops saw a dip in the cover ratio and tighter spreads. Elsewhere, focus

continues to fall on the COVID-19 case count in Tokyo, which officials attribute

to an uptick in testing.

- Aussie bonds are still flatter vs. settlement, with YM unchanged and XM +3.0.

The latter pulled back from best levels on the back of an announcement re: the

syndication of the new ACGB '51, with the long end of the cash curve also off

richest levels on the announcement.