It would seem as if the dovish decision.......>

BONDS: It would seem as if the dovish decision from the RBNZ has spilled into

the broader Bond markets, dragging Aussie Bonds & subsequently U.S. Tsys higher.

The belly of the cash Tsys curve has experienced some modest outperformance with

30-Year supply out of the U.S. due later today, as well as comments from Fed

non-voter Evans & U.S. CPI.

- JGBs have been a little less reactive to the broader market theme, with

futures easing a touch, and the long end of the curve experiencing some modest

outperformance. Today's 30-Year JGB auction could have knock on effects for

global bonds. In outright terms, the benchmark 30-Year yield has operated in a

~20bp range in the time since the most recent auction, touching the highest

level seen since October of last year, of course inspired by the tweaks to the

BOJ's YCC. While the headline yields seem attractive, the auction will be a test

of super-long demand against the backdrop of the BoJ-induced volatility. The

volatility has seemingly discouraged Japanese life insurers from entering the

market, with a focus on where 10-Year yields will settle. 0.8% is usually viewed

as a threshold in the tenor, whereby life-insurers typically become more active.