Core global FI under some pressure.....>

BOND SUMMARY: Core global FI under some pressure in early Asia trade, looking

through the latest round of headlines out of North Korea.

- T-Notes have cracked looked below yesterday's low, but there has been little

follow through as of yet, with light bear steepening evident in cash trade.

Little in the way of headline catalysts for the initial move was noted. JPY

crosses popped higher, although they remain contained, with some linking the

move in JPY to Gotobi matters ahead of the Tokyo fix.

- T-Notes last -0-06 at 130-03+. Eurodollar futures trade 2.0-2.5 ticks lower

through the reds.

- In Aus, YM -3.5, with XM -6.0. Bills 1-4 ticks lower through the reds.

- JGB futures 10 ticks below settlement, curve a touch steeper. Purchases sizes

were left unchanged in the latest round of BoJ Rinban operations covering the

1-10 Year zone of the curve.

- Looking at the USD/CNY mid-point fix, the fixing was below the median mkt exp.

but still higher than yesterday's.