Core global FI has edged lower in......>

BOND SUMMARY: Core global FI has edged lower in Asia-Pacific hours, in what has

been a very limited session. Brexit headlines remain front and centre, with

participants willing to look through the latest missile launch from North Korea.

- Light bear steepening was seen in cash Tsys, with T-Notes last -0-03+ at

130-17+ as a result. Little in the way of notable flow was observed, with a 2.0K

buyer of a TYX9 call spread providing the highlight.

- Australian bonds also edged back from best levels, with the latest round of

ACGB supply seeing a luke-warm reception. The IB strip now prices a 45% chance

of a follow up cut from the RBA next month. Will the RBA go on Melbourne Cup

day? YM +3.0, XM +1.0. Bills unchanged to 3 ticks higher through the reds.

- The belly of the JGB curve is outperforming today after yesterday's sharp,

auction-inspired sell off. Little to report otherwise, with futures back from

best levels, but still +35 vs. settlement on the back of solid gains in the

overnight session. Also worth flagging that yesterday's price action led to

30-day implied JGB vol touching the highest level seen since 2016.