T-Notes just off best levels, +0-06....>

BOND SUMMARY: T-Notes just off best levels, +0-06 at 130-04+ in a headline light

Asia session, with bull flattening the theme in cash trade. Hard to pen the

exact drivers. There was perhaps some regional reaction to U.S. political news

re: a majority of the House now supporting impeachment, although the Senate will

almost certainly reject any motion that comes to its floor, so this changes

little re: the bigger picture. It could have been regional players looking to

fade yday's sell-off. Elsewhere, a re-run of some headlines relating to U.S.

sanctions on China re: Iranian crude got very little attention from clients and

was well digested on Wednesday. Fed non-voter Kaplan's latest address didn't

provide any real shocks ahead of a plethora of Fedspeak later today.

- The bid in Tsys dragged Aussie bonds towards more neutral levels after a

limited re-open in the wake of the sell off on SYCOM. Local job vacancy data

didn't help the view re: the domestic labour market. YM last unch. XM -2.0.

- JGB futures hold lower, in a tight range in Tokyo hours, last -7 with the

curve twist flattening. The only real matter to note was that the BoJ cut the

size of 5-10 Year JGB purchases by Y30bn in the latest round of Rinban ops.