Disappointment provided by the.........>

BOND SUMMARY: Disappointment provided by the latest Australian jobs data coupled

with the broader cautious mood, inspired by continuously combative rhetoric from

U.S. President Trump, supported the core FI space.

- T-Notes eased off somewhat after topping out at 127-09 and last deals +0-04+

at 127-04. Cash Tsy yields sit 1.2bp to 0.8bp lower across the curve, with some

modest bull flattening apparent. Eurodollar contracts are 0.25 to 2.0ticks

higher through the reds.

- JGB futures advanced initially on a softer Nikkei 225 & broader risk-off flows

before sliding post-lunch on the back of a particularly weak 30-Year JGBs

auction, which saw significantly lower cover ratio, wider tail and a lower than

exp. low price. Futures now sit at 153.44, a tick above settlement, with cash

yields marginally mixed at writing.

- In Australia, YM & XM spiked higher on the jobs data and last trade 3.0 ticks

and 1.75 ticks higher respectively. Cash yields are broadly lower, with some

bull flattening evident. Bills are unch. to 5 ticks higher through the reds.

- Bunds +0.02, Bobls +0.01, Schatz -0.010.