Focus in early Asia-Pac trade has......>

BOND SUMMARY: Focus in early Asia-Pac trade has fallen on a speech from RBA

Governor Lowe, who cast doubt on the effectiveness of further monetary easing.

Lowe also pointed to a difficult global environment, where downside risks are

tilted to the downside, while further rate cuts are expected in major economies,

and called for increased fiscal/infrastructure spending from the gov't.

- YM and XM both trade 3.0 ticks lower, but off of lows touched on the back of

Lowe's remarks. Aussie bond yields sit 2.6bp-3.4bp higher across the curve, with

some bear steepening evident. Bills last seen 2-4 ticks lower through the reds.

- T-Notes have stuck to a tight range and last trade +0-01+ at 127-18. Cash Tsy

yields last seen 0.5bp to 0.8bp higher across the curve, with some bear

flattening apparent. Eurodollar contracts are 0.5 tick lower to 0.5 tick higher

through the reds. Markets have largely shrugged off weekend headlines stating

that the U.S. will announce fresh sanctions on Iran on Monday.

- JGB futures last trade at 153.86, 7 ticks below settlement. A spike to the

session high of 153.90 was noted earlier, seemingly in reaction to reports of an

earthquake which hit eastern Japan. The yield curve has twist steepened a touch.