It was a session of two halves for.....>

BOND SUMMARY: It was a session of two halves for JGBs, with price action

spilling over into the broader core FI space. A tepid 5-Year auction prompted

JGB futures to extend their slump, ignited earlier upon the breach of Monday's

trough. The offering saw the widest tail since Feb 2016 with low price at 100.80

vs. BBG projection of 100.89. However, after marking a new YtD low of 151.86,

the paper staged a dynamic recovery and now sits at 152.25, just 1 tick shy of

settlement. Cash yield dynamics was in focus, with 10-Year yield briefly turning

+ve for the first time since March. At typing, the yield curve runs flatter;

10-Year yield still flirts with the zero level.

- T-Notes started on a firmer note amid a flurry of conflicting headlines re:

int'l & cross-party USMCA talks, but faded as participants seemingly warmed to

the idea that a deal is nigh. The paper last trades +0-03 at 129-02. Yields sit

around neutral lvls. Eurodollars last seen -0.5 to +1.0 tick thru reds.

- Ozzie YM +2.0 & XM +3.5; yields 2.1-4.2bp lower, curve is flatter. Bills trade

-1 to +3 ticks thru reds. Firmer than exp. Chinese infl. data may have applied a

modicum of pressure. The AOFM sold A$150mn of the 0.75% 21 Nov '27 I/L ACGB.