The major bond markets benefitted......>

BOND SUMMARY: The major bond markets benefitted from some modest JPY strength

and lacklustre equity trade overnight.

- In addition to this, Aussie bonds benefitted from over A$4.0bn worth of coupon

payments, and probably drew further support from the move lower in Chinese

equities that was seen on Monday. YM last trades 4.5 ticks higher, with XM +5.0

ticks. YM/XM trades at 50.5 ticks, with the cash equivalent at 46.3bp. Bills

trade 2-5 ticks higher through the reds.

- T-Notes also edged higher, on the aforementioned factors. T-Notes last

123.00+, U.S. 10-Year cash Tsy yields last 2.578%. Eurodollar futures trade 0.5

tick lower to 0.5 tick higher through the reds.

- JGB futures trade around unchanged levels, after sticking to a tight range and

unwinding the overnight session downtick.

- German fixed income futures trade unchanged to lower at writing. Schatz unch.,

Bobl, -0.5 tick, Bunds -22 ticks.