The Iranian response to the U.S........>

BOND SUMMARY: The Iranian response to the U.S. killing the individual dubbed the

second most influential in Iran has generated a strong bid for core FI in early

Asia-Pac trade, with the IRGC striking a couple of U.S. installations in Iraq

(although no U.S. casualties have been reported, yet). T-Notes +0-20 at 129-25

last on news that President Trump will not make an address this evening, after

earlier speculation that he would. Contract back from highs of 130-06, with

pockets of selling showing up all the way through the latter part of the rally,

which many have attributed to profit taking from pre-positioning. Yields sit

7.4-9.7bp lower across the curve, with 10s outperforming. Eurodollar futures

trade 2.5-7.5 ticks higher through the reds, in a bull flattening motion.

- Aussie bonds see YM +4.0, XM +6.5, with YM/XM 2.0 ticks flatter at 43.0. Bills

print 2-5 ticks higher through the reds. Local building approvals data was much

stronger than expected, with small positive revisions also seen to prev.

readings, but geopolitics have far outweighed local data.

- JGB futures +20, 20s outperform in cash, 30s maybe a little more ltd than

usual ahead of tomorrow's 30-Year supply.