Global core FI sits back from worst....>

BOND SUMMARY: Global core FI sits back from worst levels after a move higher in

U.S. Tsy yields applied some pressure in early Asia-Pac trading as participants

returned from the elongated holiday weekend in the States. T-Notes last -0-04 at

131-19, yields are 1.4-4.0bp higher across the curve, with some bear steepening

in play. A stable yuan and headlines noting that China is set to release laws

re: Fentanyl soon applied some further pressure, before China downplayed its

part in the Fentanyl issues in the U.S.

- Aussie bonds were largely un-reactive to local data, with weak retail sales

counter balanced by a wider than expected current account surplus. Focus is

fixed on the latest RBA MonPol decision, due shortly. YM +1.0, XM unch. YM/XM

deals at 24.5. Bills trade unchanged to 1 tick higher through the red.

- JGB futures unwound their modest overnight gains and more ahead of 10-Year

supply, with some light concession evident. The cover ratio eased at the margin

at the auction, with the tail virtually steady. The low price was bang in line

with exp. The contract trades back from lows in the wake of the auction, last

-1, with the cash curve twist flattening.