The Asia-Pacific session has been in...>

BOND SUMMARY: The Asia-Pacific session has been in low gear so far, with little

of note on the news wires. A modest recovery in risk appetite, reflected in

regional equity markets, has applied pressure to core FI.

- T-Notes trade -0-02+ at 129-13. Cash Tsy yield curve runs marginally steeper,

sits a touch higher. Eurodollars are 0.5-1.0 tick lower through the reds.

- JGB futures last seen at 153.14, 28 ticks worse off. A firmer Nikkei 225 has

applied some pressure to the space. Cash JGB yields have edged higher across the

curve. Japanese CPI saw modest upticks in the core & core-core measures and a

slight miss in the headline figure which stayed unch. Little of note in the

local flash Jibun Bank PMIs, which inched higher. The focus turns to the

upcoming liquidity enhancement auction for 5-15.5 Year JGBs.

- Australian YM trades -1.5 ticks, XM -4.0 ticks. Aussie bond yields sit

1.1-4.0bp higher, the curve runs a bit steeper. Bills trade 1-3 ticks lower

through the reds. CBA released their flash PMI surveys, all three tallies

slipped into contractionary territory, albeit marginally. The AOFM released its

weekly issuance schedule (see an earlier bullet).