Core global FI markets continued to....>

BOND SUMMARY: Core global FI markets continued to fade away from their

respective Monday highs in Asia hours, but there really was very little to write

home about, with T-Notes sticking to a 0-05 tick range. Cash Tsy trade sees

yields 0.1-1.1bp higher across the curve at writing. On the flow side, the

standout was buying of the TYH0 130.00 calls, with ~8.5K lots trading overnight.

- JGB futures hover just above lows, -25 ticks on the day, with the curve bear

steepening. The latest 10-Year JGB auction provided some brief respite to the

sell off, deemed solid after December's dismal offering, but was by no means

strong. The cover ratio printed at the highest level for a 10-Year auction since

August, with the low price topping exp. and tail notably narrower vs. the poor

Dec auction.

- Aussie bond futures generally tracked the broader ebb & flow, outside of a

soft ANZ job ads print, which provided some support in early Sydney hours. YM

unch., XM -2.0. Bills 1-2 ticks higher through the reds. Corporate/SSA A$

issuance was back in focus.