Elevated tensions linked to the........>

BOND SUMMARY: Elevated tensions linked to the attack on two oil tankers near the

Hormuz Strait remain in focus and the subsequent blame game, supporting core FI

to a degree. The U.S. and Saudi Arabia pointed to Iran, who denied accusations,

while Japan refrained from taking a stance. Worth noting that developed FI space

has been rather range-bound as of yet.

- T-Notes last trade +0-01 at 127-12+, with cash Tsy yields sitting 0.8bp to

1.2bp lower across the curve. Eurodollar contracts are dealing 0.25 tick lower

to 0.5 tick higher through the reds.

- JGB futures last trade 5 ticks above settlement, at 153,49, as the broader

risk-off feel and the initial decline in the Nikkei 225 have lent support. Cash

yields last seen 0.5bp lower to 3.0bp higher across the curve. A degree of twist

steepening is apparent, as the super-long end underperforms. As a reminder, the

BoJ will buy 5-10 Year JGBs today.

- Aussie bonds are 1.9bp lower to 0.1bp higher, while the curve has flattened

somewhat. YM last trades 0.5 tick higher, with XM seen 1.5 tick higher. Bills

are trading 1 tick lower to 1 tick higher through the reds.