Early Tokyo trade has been quite.......>

BOND SUMMARY: Early Tokyo trade has been quite subdued, with core FI

consolidating in the wake of yesterday's moves driven by fluctuations in risk

appetite and money market matters, as well as ahead of the imminent FOMC

monetary policy decision.

- T-Notes range-bound, last +0-00+ at 129-09+, with Eurodollar contracts dealing

0.5-1.0 tick lower through the reds. Cash Tsy yield curve experiences some very

marginal steepening at typing.

- JGB futures sit 5 ticks above settlement, right at the 154.00 figure. Cash

yield curve has twist steepened slightly. Little to no reaction has been seen to

the narrower than expected trade deficit in Japan.

- In Australia, YM +0.5 tick, XM unch. Modest steepening creeps into the cash

yield curve, with yields sitting -0.8bp to +0.5b. Bills are trading -1 to +2

ticks through the reds. A$1.2bn worth of ACGB 1.50% 21 June 2031 will be offered

at the top of the hour; the auction provides today's highlight in Australia.