Not too much to report in the way of...>

BOND SUMMARY: Not too much to report in the way of fresh news flow, apart from

renewed tensions on the Korean peninsula, but risk appetite has turned sour.

North Korea informed via its state media that it will cut communication channels

with the South. T-Notes have advanced past yesterday's peak. The contract trades

+0-07+ at 137-17 as we type. Curve has bull flattened in cash trade. Eurodollar

futures last trade -0.5 to +1.0 tick through the reds. Focus is on the FOMC

meeting, which is already underway and will wrap up on Wednesday.

- JGB futures are also well bid and last trade at 151.97, 32 ticks above

settlement. Cash yields have moved lower, with a degree of curve flattening

creeping in. Japan reported better than exp. earnings data and focus turns to

flash machine tool orders & 6-Month Bill supply.

- Australia is back from holidays, with YM +0.5 & XM +4.75 (near session highs).

Yield curve has bull flattened in cash trade. Bills last seen unch. to -1 tick

through the reds. Australian ANZ job ads rose 0.5% M/M in May after tumbling

53.4% in Apr, while NAB Business Confidence improved to -20 from -45. The AOFM

sold A$150mn of I/L ACGB 2.0% 21 Aug '35 & A$2.0bn of ACGB 0.25% 21 Nov '24.