T-Notes held a tight range in..........>

BOND SUMMARY: T-Notes held a tight range in Asia-Pac hours, with a defensive

session for regional equities, as well as U.S. equity index futures, limiting

any losses. Contract last -0-02+ at 139-02+, with yields 0.6-1.0bp cheaper

across the curve, swaps a touch tighter on the day. Small TYM0/USM0 flattener

was blocked, same DV01 and direction as a trade lodged yesterday in Asia hours.

- JGB futures held a tight range in the morning, before challenging overnight

highs, aided by a strong 5.5-15.5 Year liquidity enhancement auction for off the

run JGBs. Contract last +27, with the belly leading in the afternoon, and swaps

generally wider. Elsewhere, the Japanese fiscal cogs continue to turn, with

continued focus on COVID-19 matters evident.

- Aussie bond futures flatter on the day, but XM is off best levels. YM +2.0, XM

+5.5. Worth noting that the RBA tapered the purchase size of today's ACGB buying

operations, down to A$1.0bn (prev. A$1.5bn) in a sign that the Bank remains

comfortable with the way the operations are going/market is functioning, while

labour market data was much stronger than exp., but that was owing to a sample

period that evaded the real onset of the COVID-19 worries (ending Mar 14).