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T-Notes have held a 0-02+ tick.........>

BOND SUMMARY: T-Notes have held a 0-02+ tick range, last -0-00+ at 129-04+, with
the yield curve twist steepening (5s30s ~3.5bp steeper at writing.) after
confirmation that the U.S. Tsy will issue 20-Year bonds in H120, following input
from market participants. Contract tested early lows after solid to strong
Chinese economic activity data. Focus on some early Asia block flow which
initially looked like TY/US & TY/WN mis-weighted steepeners when looking at
prices, but various sources pointed to a fly structure being in play, selling
USH0, based on the aforementioned 20-Year issuance announcement.
- JGB futs edged higher in the afternoon, last +12, with the long end
experiencing some marginal outperformance in the wake of a solid enough round of
20-Year supply. On the budget front, the govt's semi-annual update left the
timeframe in which it expects to achieve a balanced budget unchanged, although
it revised down initial surplus estimates (in terms of nominal amounts).
- Aussie bond futures saw nothing in the way of tangible reaction after the AOFM
noted that it will sell A$3.5bn of the new 1.25% 21 May 2032 bond next week,
with coupon size in line with exp. YM +0.5, XM unch.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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