Price action in core FI space has......>

BOND SUMMARY: Price action in core FI space has been fairly subdued so far, with

participants mulling the FOMC monetary policy decision. Members chose to stand

pat on policy as expected, but Fed Chair Powell signalled that inflation would

have to pick up significantly before any rate hikes are warranted. Powell's

comments put a bid into Tsys. In Asia, T-Notes have extended their corrective

pullback from yesterday's highs & last trade -0-03 at 129-06. Cash yield curve

is marginally steeper. Eurodollars sit +0.5 to -0.5 tick through the reds.

- After a spell of minor fluctuations, JGB futures have stabilised at 152.25, 16

ticks higher vs. settlement. JGB yields sit slightly lower across the curve.

Little impact on the space noted as the local core machine orders missed

forecasts. BoJ Dep Gov Amamiya speaks at typing, no surprises in his address so

far. The BoJ will conduct enhanced liquidity auction for of-the-run 15.5-39 Year

JGBs today.

- Australian YM -0.5 & XM +0.25 at typing; cash yield curve has twist flattened

a touch. Bills last seen -2 to +1 tick through the reds. Australian consumer

inflation expectation stayed unchanged at +4.0% in December.