Focus has remained on the fact that....>

BOND SUMMARY: Focus has remained on the fact that the FOMC effectively put a

rate cut on the table yesterday in case outlook worsens, with participants also

noting the BG source report stating that U.S. Pres Trump thinks he could oust

Powell as Fed Chair (although does not plan to do it yet).

- T-Notes _0-11 at 128-06+, just shy of highs. Cash Tsy yields are 2.2bp to

4.6bp lower and the curve has bull flattened. Eurodollar contracts are up to 6.0

ticks higher through the reds.

- JGB futures finished the morning session at 153.83, 19 ticks above settlement,

as the outperforming Nikkei 225 dragged them off of highs. Yields are 0.7bp to

2.9bp lower across the curve, with some bull flattening apparent. The BoJ left

its policy settings unch. Today, voting 7 to 2 to keep yield curve control.

- In Australia, YM last trades 6.0 ticks higher, with XM 4.5 ticks higher, as

the latest speech from RBA Gov Lowe prompted them to extend gains. Lowe said

that it is "not unrealistic" to expect a further cut to the cash rate given

persistent spare capacity in the labour mkt. Aussie bond yields are 4.5bp to

5.6bp lower across the curve, while bills are 3-6 ticks higher through the reds.