Core FI price action has been..........>

BOND SUMMARY: Core FI price action has been subdued in the sedate early part of

the Asia-Pac session. With little rock the boat in the way of fresh news flow,

focus remains on familiar matters. T-Notes last seen -0-03 at 138-23+, with

yields sitting a touch lower in cash trade. Eurodollar futures are unch. to -0.5

tick through the reds as we type.

- JGB futures have quickly faded their initial uptick and last trade at 152.05,

7 pips shy of settlement. Yields are marginally mixed in cash trade, with the

5-7 sector underperforming. Japan's CPI data was the key point of note on the

local docket today, showing a continued deflation in May.

- Turning to Australia, YM -0.5 & XM +2.0 at typing. Modest twist flattening

evident in cash trade, while bills are unch. to +1 tick through the reds. The

AOFM tapped the mkt for A$2.0bn worth of ACGB 3.25% 21 Apr 2025 at a bid/cover

ratio of 5.09x. Elsewhere, a round of comments from RBA's Harper re: the need

for a "tapering agreement" for stimulus schemes due to expire in Sep & PM

Morrison's statement detailing a state-led cyber-attack against Australia have

drawn attention. Focus turns to preliminary retail sales data, due shortly.