Asian traders seemed willing to take...>

BOND SUMMARY: Asian traders seemed willing to take money off the table in light

of yesterday's Tsy rally, or they may have been trying to fade Bullard-induced

move higher. FVN9 put downside was noted once again, although activity was a

little more limited in size than in recent sessions & was conducted at higher

strikes. Eurodollar put options were also in demand, with 40.0K of the 0EN9

98.250/98.125 put spread lifted. T-Notes last -0-08 at 126-20+, with the curve

bear flattening. Washington post headlines suggesting that Republican lawmakers

are discussing blocking Trump's tariffs on Mexico also helped to add some

pressure to the space.

- AU bond futures trade at neutral levels (YM & XM virtually unchanged), with

little impact on the space from the latest round of local data, as participants

look to the RBA decision (a cut is fully priced) & speech from RBA Gov. Lowe.

- JGB futures trade a touch higher but back from best levels, with the curve

bull flattening. The latest 10-Year JGB auction was average to soft, with a lack

of concession evident in morning trade.

- German FI futures sit a touch above settlement levels at writing.