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.