Bond futures are trading at daily highs.......>

BONDS: Bond futures are trading at daily highs across the board, with the US

outperforming as bond and equity correlations surge.  

- US T-note futures trade at 118-10+, extending yesterday's late-day rally,

while the 10-year yield has dropped back below 3.1500%. The curve has remained

flat at 31.64bps following yesterday's drop. The underperformance in the 30-year

continues with the 10s-30s trading near multi-month highs at 18.43bps. 

- Aussie bond futures have tracked the US higher but are off early lows to trade

at 97.27. 

- JGB futures are approaching their Oct 4 highs at 150.22 as the sharp drop in

inflation expectations has supported real yields, in contrast to the drop in

real yields seen in the US.