Core FI have picked up a bid after.....>

BOND SUMMARY: Core FI have picked up a bid after the release of monthly economic

activity indicators out of China, which broadly missed expectations. T-Notes

last trade +0-04+ at 129-31. Cash Tsy yields sit 1.1-4.3bp lower across the

curve, with some bull steepening apparent. Eurodollars last trade unch. to 5.5

ticks higher through the reds.

- JGB futures finished the morning session at 154.11, 11 ticks shy of

settlement. Cash JGB yield curve runs steeper, with yields seen 0.2-2.0bp better

off. Yonhap reported that South Korea has started the process of removing Japan

from its list of trusted trading partners after an analogical move by Tokyo.

- Aussie bond futures have trimmed yesterday's losses; YM trades -2.0 ticks,

with XM -2.5 ticks. Cash yields trade 1.6bp lower to 2.2bp higher across the

curve, while bills are 1-3 ticks lower through the reds. A beat in Australian

quarterly wage price index applied some light pressure to the space, but only

briefly. Elsewhere, Westpac cons. conf. index ticked higher, while A$800mn of

ACGB 2.50% 21 May 2030 was sold at an auction, attracting cover ratio of 3.69x

vs. the prev. 2.69x.