Early twist steepening of the Tsy......>

BOND SUMMARY: Early twist steepening of the Tsy curve (spill over from NY trade)

has more than reversed, with the curve now bull flattening. 2s 0.1bp richer, 30s

1.1bp richer on the day, as crude oil trades on the defensive. Swap curve has

taken its lead from Tsys all session, with spreads mixed at writing. T-Notes

happy to hold a tight range, last +0-00+ at 138-21+. For Eurodollar futures,

EDM0 continues to outperform through the reds, contract +1.0. vs. unchanged to

-0.5 for the remainder of the contracts in that area of the strip.

- JGB futures looked through the latest round of adjustments to BoJ purchase

sizes across the 1-10 Year zone of the curve (with the 3 buckets experiencing

Y20bn worth of extra purchases apiece), even with moderations in the offer to

cover ratio across all 3 buckets. Contract last +2 on the day. Front end of the

curve outperforms on spill over from yesterday's SME liquidity enhancing

measures from the BoJ.

- In Australia YM +0.5, XM -1.5, with much of the overnight steepening unwound

in the wake of a well-received ACGB 2032 auction.