Fairly quiet so far, little new to.....>

BOND SUMMARY: Fairly quiet so far, little new to report on data and news fronts

in the way of major market movers. In geopolitical news, tensions in East Asia

have captured some attention as North Korea reportedly fired two missiles into

the East Sea, while a U.S. military vessel sailed through the Taiwan Strait.

Nonetheless, observed impact on core FI space has been muted.

- T-Notes are range-bound, last trade +0-00+ at 127-17. The yield curve has

twist steepened, albeit only marginally. Eurodollar contracts are unch. to 1.0

tick higher through the reds.

- With the Nikkei 225 picking up a small bid, JGB futures have eased off

slightly, but still trade 4 ticks above settlement at 153.72. Cash JGB yields

are close to unchanged across the curve. Y2.0tn of 2-Year JGBs will be auctioned

today. Elsewhere, Japanese services PPI slowed down a tad in June.

- In Australia, YM sits 2.0 ticks higher, XM last seen 3.5 ticks higher. Both

have stuck to narrow ranges. Aussie yield curve has bull flattened, with yields

trading 1.4-4.0bps lower. Bills are dealing 1-2 ticks higher through the reds. A

speech from RBA Governor Lowe headlines the Australian docket today.