Central banks stole the show. Core.....>

BOND SUMMARY: Central banks stole the show. Core FI edged higher early on as the

ECB announced a new EUR750bn asset purchase scheme. T-Notes faded the move,

extending losses to a session low of 133-21 after the RBA's MonPol announcement.

At the same time, the Fed launched the Money Mkt Mutual Fund iquidity Facility

to "make loans available to eligible financial institutions secured by

high-quality assets." T-Notes sit -0-06+ at 133-28. Yields -1.9bp to +5.6bp,

curve twist steepened. Eurodollars -1.25 to +2.0 ticks thru reds.

- In Oz, the RBA slashed the cash rate to its effective lower boundary of 0.25%,

pledged not to raise it for some time & deployed QE, targeting 3-yr yield at

around 0.25%, with daily purchases on the secondary mkt. ACGB 10-yr yield posted

a record, 128bp knee-jerk spike in reaction & we suspect it was because the RBA

didn't copy the BoJ's practice of targeting 10-yrs. At typing, yields sit

-20.5bp to +24.1bp, twist steepening evident. Similar dynamics seen in futs; YM

+10.5, with XM -24.5 back from a sharp drop. Bills up to +11 ticks thru reds.

- JGB futs at 151.06, -69 ticks vs. settlement. The contract slid, despite

jumping twice on two unscheduled JGB purchase ops from the BoJ.