T-Notes slipped as E-minis turned......>

BOND SUMMARY: T-Notes slipped as E-minis turned green, signalling stabilisation

after the sharp sell-off seen at Wall St. yesterday. The contract last trade

-0-05+ at 138-28. Yields are marginally mixed in cash trade. Eurodollar futures

last seen 1.5-3.5 tick lower through the reds, after the Fed said it will

increase the minimum bid rates on its overnight & term repos.

- While the risk-off impulse has dissipated in the U.S., it struck Asia markets,

with regional equities taking a hit. JGB futures were bumped higher as a result,

but already sit off best levels, last +10 ticks at 152.26. Cash JGB yields sit

lower, curve runs a tad flatter. Earlier, the BoJ left the sizes of its 1-3 &

3-5 Year JGB purchases unchanged. Focus turns to final Japanese industrial

output figures.

- In Australia, YM -0.5 & XM +4.25 (near session highs). Yield curve has

undergone flattening, amid aforementioned risk aversion. Bills last seen unch.

to +1 tick through the reds. The AOFM is about to release their issuance

schedule for next week.