The combination of stronger than.......>

BOND SUMMARY: The combination of stronger than exp. Japanese GDP (albeit with a

sketchy breakdown) coupled with a surprise win for the incumbent party in the

Australian election (alongside speculation that it may be able to form a

majority) weighed on the core global bond space in early Asia-Pac trade,

negating the ongoing trade war worry. That was before activity cooled in the 2nd

half of the session, although a negative start for Chinese equities helped limit

the losses in the FI space. T-Notes last -0-02 at 124-13+, U.S. 10-Year cash Tsy

yields last 2.402%, with the curve bear flattening at the margin. Eurodollar

futures trade 0.25 tick higher-1.5 ticks lower through the reds.

- Aussie bond futures also trade heavy, YM last -5.5 ticks, with XM -4.5 ticks.

YM/XM trades at 46.5 ticks, with the cash equivalent at 43.6bp. Bills trade 5-6

ticks lower through the reds.

- JGB futures trade 12 ticks lower, but well off the GDP reaction lows. The cash

space has seen some modest bear flattening in play.

- German FI futures sit a touch lower; Schatz -0.5 tick, Bobls -4.0 ticks, Bunds

-14 ticks.