Stronger than exp. Chinese GDP &.......>

BOND SUMMARY: Stronger than exp. Chinese GDP & econ activity data applied

pressure to the major FI markets in Asia-Pac hours, after softer than exp. NZ

CPI data leant support to AU Bonds & to a lesser extent, U.S. Tsys, early on.

- T-Notes last trade at 122.25+, 1 tick softer on the day, with U.S. 10-Year

cash Tsy yields at 2.598%. Yields are 0.2-0.7bp higher across the curve, with

30-Year yields testing 3.0%, a level not seen since the March FOMC decision.

- Aussie bond futures are re-testing their SYCOM lows, with participants now

looking to tomorrow's domestic labour market data, a key area of focus for the

RBA. YM last -1.5 ticks, with XM -2.5 ticks. YM/XM continues to steepen, at 52.5

ticks, with the cash equivalent at 48.5bp. Bills trade unch. to 3 ticks lower.

- JGB futures went into the lunch break at worst levels, pressured by the

Chinese data. The latest round of Rinban operations saw the BoJ leave the size

of its 5-10 Year & JGBi purchases unchanged, offer to cover ratios as follows:

5-10 Year 2.44x (prev. 3.09x), JGBi 6.68x (prev. 3.39x).

- German fixed income futures are mostly lower in the wake of the Chinese data.

Schatz +0.5 tick, Bobls -6.0 ticks, Bunds -27 ticks.