T-Notes consolidated in a 0-05 tick....>

BOND SUMMARY: T-Notes consolidated in a 0-05 tick range in Asia, last -0-03 at

130-25+, curve twist steepening. Early flow saw risk reversals blocked, adding

to the recent theme in Asia. This time it was FVH0 119.25/50 puts, which were

seemingly bought vs. 120.00/120.25 calls, with a slight overweighting of the

puts & the delta exposure hedged. Eurodlr futs sit -0.5 to -1.0 through reds.

- JGB futures coiled in the morning session, with the latest uptick in the

contract failing ahead of Monday's Tokyo high. Futures last -2, with slight

pressure on the super long end of the curve, in the wake of a soft 40-Year

auction, with a lack of concession, the recent richening & the line's exemption

from BoJ Rinban ops, as well as some potential background worry re: the BoJ's

desire for a steeper curve, limiting demand at auction.

- Aussie bond futures well bid, as the space plays catch up to the events that

occurred over the long holiday weekend. YM +7.0, XM +9.5, recent flattening

theme still in play. Soft headline NAB business survey readings provided some

fresh impetus, allowing contracts to trade through SYCOM highs, but they have

since backed off from best levels. Bills +3/6 ticks through the reds.