Core FI are back from best levels,.....>

BOND SUMMARY: Core FI are back from best levels, with participants preparing for

today's monetary policy decision from U.S. FOMC. Elsewhere, China has just

published below-forecast inflation data, while U.S. CPI is due later in the day.

T-Notes have shed their earlier uptick and last trade unch. at 137-23, with

yields turning positive across the curve, albeit only marginally. Eurodollars

last seen unch. to +0.5 tick through the reds.

- JGB futures have also dived off earlier highs and last trade at 151.97, 1 tick

above settlement. Cash yields still mostly sit a touch lower. Japanese PPI &

core machine orders were worse than expected, while the BoJ left the sizes of

its 3-10 Year JGB purchases unchanged.

- In Australia, YM -0.5 & XM +1.75 (off highs). Yield curve has twist flattened

in cash trade. Bills sit unch. to -3 ticks through the reds. Westpac Consumer

Confidence improved to 93.7 from 88.1, while local housing finance data was

better than expected. Elsewhere, the AOFM auctioned ACGB 1.0% 21 Dec '30.