Softer than expected CPI from New......>

BOND SUMMARY: Softer than expected CPI from New Zealand provided a bid in Aussie

bonds, and to a lesser extent, Tsy futures, in early trade, before a positive

start for the Nikkei 225 resulted in fresh YtD highs for USD/JPY which applied

slight pressure to Tsys, allowing T-Notes to trade closer to unchanged levels,

although the contract has stuck to a tight range.

- T-Notes last 122.28+, U.S. 10-Year cash Tsy yields last 2.585%. Eurodollar

futures trade unchanged to 0.5 tick higher through the reds.

- Aussie Bonds trade around unchanged levels after slipping during SYCOM hours.

YM last +0.5 tick, with XM unch. YM/XM trades at 52.0, with the cash equivalent

at 47.9bp. Bills trade unch. to 1 tick lower through the reds.

- JGB futures trade 2 ticks lower ahead of 5-10 Year Rinban operations, with the

long end underperforming at the margin in cash trade.

- German FI futures are mixed. Schatz +1.5 ticks, Bobls unch., Bunds -7 ticks.

- Broader focus will fall on Chinese GDP data due at 03:00 BST, while the latest

round of NZ CPI data will likely generate heightened interest in the release of

the RBNZ's sectoral CPI model, scheduled for 04:00 BST.