T-Notes were well bid in Asia-Pac......>

BOND SUMMARY: T-Notes were well bid in Asia-Pac hours, on above average volumes,

as fresh COVID-19 worry in both the U.S. & China, as well as heightened tensions

between the two Koreas supported the space. Contract +0-08 at 138-31+, just off

highs, on above average volume. Cash trade saw bull flattening, with yields

1.6-5.0bp richer across the curve as we move towards European hours

- JGB futures edged higher, but held a tight range, last +10 vs. settlement,

with the 5-10 Year zone of the cash curve underperforming all day in the build

up to the latest liquidity enhancement auction for 5-15.5 Year off the run JGBs.

The auction itself is probably best described as tepid, with little reaction

after results were seen.

- Flattening was the theme in Australia, with YM unchanged and XM +5.0. Local

focus fell on comments from PM Morrison who pointed to the need for some degree

of fiscal prudence as he unveiled a round of infrastructure project boosting

measures.

- The latest round of monthly Chinese economic activity data had no tangible

impact on the core FI markets.