Simmering U.S.-Iran tensions...........>

BOND SUMMARY: Simmering U.S.-Iran tensions supported the core global FI space

from the get-go in Asia hours, with a disappointing round of Caixin China PMI

data also resulting in some buying activity. However, the moves have eased from

extremes, with participants seemingly happy to fade price action on the back of

a lack of any hard line retaliatory strikes from Iran over the weekend (maybe a

result of the 3 days of mourning declared on the back of Soleimani's death).

- T-Notes +0-04 at 129-16+, with yields 0.6-1.6bp lower across the curve.

Eurodollar futures +1.0-2.0 ticks through the reds.

- JGB futures faded from best levels in the afternoon session, last dealing +21

ticks, which is 23 ticks back from highs, as notable upticks in the offer to

cover ratios in the latest round of 10-25 & 25+ Year BoJ Rinban ops weighed on

the space.

- Aussie bond futures followed the broader ebb & flow. YM +3.0, XM +4.0. Bills

2-4 ticks higher through the reds. Some focus on comments from Australian PM

Morison as he pointed to $2bn being made available for bushfire recovery

efforts, over a 2 year period, and that more would be provided if needed.