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Bull flattening the initial Tsy........>

BOND SUMMARY: Bull flattening the initial Tsy theme in Asia after Thursday's
range breaks for both 10-Year yields and the 5-/30-Year yield spread, although
that has unwound, with yields now little changed across the curve as we move
into European hours & risk-on flows pick up, albeit with no notable headline
driver. Decent volume for T-Notes again, with the contract pressing to fresh
lows last -0-02+ at 137-23, with ~100K lots changing hands thus far.
- Aussie bond futures held steeper on the back of the SYCOM market moves,
although the curve and outright contracts sit a little off extremes, with YM
unchanged and XM -5.0. The former failed to force its way above 0.30% in implied
yield terms, with many suggesting a break of that level may be the trigger to
get the RBA to step off the sidelines re: ACGB bond buying. Elsewhere, a lack of
heavy duration supply scheduled for next week may have helped XM at the margin.
- JGB futures have edged back towards lows on the broader impulse, last -15,
after a round of solid buying at the Tokyo re-open. Elsewhere, we saw the BoJ
lift the size of its 5-10 Year JGB purchases, with the broader Rinban results
mixed, ultimately providing little support for the space.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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