T-Notes posted a leg higher as a BBG...>

BOND SUMMARY: T-Notes posted a leg higher as a BBG ran a headline noting that

Beijing will adopt strict closed-off management at all residential compounds,

triggering a bout of light risk-off flows. The headline returned focus to the

resurgence of Covid-19 in China's capital, which yesterday decided to close all

of its schools. Worth adding that familiar geopolitical concerns continue to

linger. T-Notes trade +0-03 at 138-17, slightly off session highs. Yield curve

has bull flattened in cash trade. Eurodollars sit unch. to +1.5 tick thru reds.

- JGB futures have erased earlier modest gains and last trade at 152.08, 8 ticks

above settlement. Cash JGB yields sit marginally lower across the curve. The BoJ

conducted 1-3, 5-10 & 25+ Year Rinban ops today, leaving purchase sizes across

all three baskets unchanged. Meanwhile, Japanese trade deficit was narrower than

expected as imports tumbled more than forecast.

- In Oz, YM +0.5 & XM +0.5 at typing, with yields marginally mixed in cash

trade. Bills last seen unch. to +3 ticks through the reds. The auction of ACGB

1.25% 21 May 2032 drew the lowest cover ratio since the RBA started QE, but the

number wasn't that bad vs. the prev. offering when adjusted for auction size.