Softer than exp. Australian CPI data...>

BOND SUMMARY: Softer than exp. Australian CPI data resulted in a flurry of

activity, with Australian yields tumbling as a result. YM last trades 16.0 ticks

higher on the day, with XM +11.0 ticks. YM/XM trades at 56.5 ticks, with the

cash equivalent at 51.1bp. Bills trade 18-14 ticks higher through the reds, as

bets on RBA rate cuts were rolled forward. Odds of a May cut now sit at 58% from

a mere 12% yesterday (based on OIS).

- Tsys followed Aussie paper higher. T-Notes last 123.07, U.S. 10-Year cash Tsy

yields last 2.558%. Eurodollar futures trade 0.25 tick lower to 0.5 tick higher

through the reds. A block trade saw 20K of the 0EK9 97.625/97.250 put spread

blocked vs. 40.0K of the 0EK9 97.750 calls.

- JGB futures were dragged higher by the bid in Tsys, as the Nikkei 225 pulled

back. The BoJ left the size of its 1-5 & 10-25+ Year Rinban operations unchanged

today.

- German fixed income futures also ticked higher, in the main. Schatz unch.,

Bobls +4.0 ticks, Bunds +17 ticks.