T-Notes have edged lower in early......>

BOND SUMMARY: T-Notes have edged lower in early Asia-Pac trade, with U.S. equity

index futures and the Nikkei 225 making modest advances. The cash curve has

twist flattened in early trade following the long weekend. Short end under some

modest pressure ahead of today's supply schedule which includes 3- & 6-Month

bills, in addition to 2- & 5-Year Notes. Long end supported by the worry

surrounding Italy. T-Notes last 124-31+, U.S. 10-Year cash Tsy yields last

2.311%. Eurodollar futures trade virtually unchanged through the reds.

- Little to pen for the Aussie Bond space, with futures struggling for any clear

direction ahead of tomorrow's supply. YM last unchanged, with XM +1.0 tick.

Bills trade unchanged to 1 tick lower through the reds.

- JGB futures are 3 ticks higher, with little sign of concession in the long end

ahead of today's 40-Year supply.

- German FI futures sit a touch below settlement levels; Schatz -1.0 tick, Bobls

-3.0 ticks, Bunds -10 ticks.