T-Notes ticked higher in early Asia....>

BOND SUMMARY: T-Notes ticked higher in early Asia trade on the back of the U.S.

TR proposing $2.4bn worth of levies on French products in the wake of the

digital tax that France is enforcing. The U.S. is also considering probing

Turkey, Austria & Italy on digital tax matters. Space was then subjected to some

pressure based on matter in Australia and Japan, with pockets of selling in

T-Notes seen through Asia hours. Contract last +0-00+ at 128-29+, yields

1.0-1.7bp higher across the curve.

- Aussie bond futures softened in the wake of the latest RBA Monpol decision,

which saw the Bank leave its cash rate unchanged, take a slightly less negative

view of the international economic environment and reaffirm its willingness to

ease further if required, while pointing to the lags of MonPol. YM -7.0, XM

-8.0. Bills 4-6 ticks lower.

- Fiscal rumours continue to do the rounds in Japan, but it was 3rd consecutive

soft 10-Year JGB auction that did damage to JGBs. Futures last -23, operating

off of lows, with 10-Year paper underperforming in cash trade.