All eyes remain on the fallout from....>

BOND SUMMARY: All eyes remain on the fallout from the weekend drone strike on

key Saudi oil facilities, which affected roughly 5% of global crude production

and triggered a major disruption in the oil market. Whereas Yemeni Houthi rebels

took credit for the attack, Iraq and (more prominently) Iran have been mentioned

during the subsequent finger-pointing. U.S. President Trump was quick to tweet

about his decision to authorise the release of oil from U.S. Strategic Petroleum

Reserves, if needed to keep market amply supplied. However, he also noted that

the U.S. remains "locked and loaded" to respond once the culprit is identified.

- T-Notes trade +0-14+ at 129-01, slightly off an earlier session high of

129-02. Eurodollar contracts trade unch. to +5.5 ticks through the reds. Cash

Tsys are closed due to a market closure in Japan, which likely saps liquidity.

- Aussie bond futures have advanced, but still trade shy of settlement; YMZ9

last -3.0 ticks, XM -1.75 ticks. Bills sit 3-4 ticks lower through the reds.

Aussie bond yields last seen 0.7-3.3bp better off & the curve runs flatter.

Focus turns to China's monthly activity data, due at the top of the hour.