The RBNZ surprised markets by opting...>

BOND SUMMARY: The RBNZ surprised markets by opting to take a breath this time

and leave the OCR unchanged, defying expectations. Resulting pressure on NZ

bonds spilled over into core FI, to an extent. That said, the space drew support

from simmering tensions in Hong Kong, as well as persistent uncertainty re:

Sino-U.S. trade relations after yesterday's speech from U.S. Pres Trump was yet

another head-scratcher. T-Notes last trade -0-03 at 128-14. Cash Tsy yield curve

is lower and flatter. Eurodollars seen up to 1.5 tick lower through the reds.

The focus turns to Fed Chair Powell's testimony & U.S. CPI data.

- JGB futures have stabilised after climbing from the off and trade at 152.80,

+21 ticks vs. settlement. Cash JGB yields sit lower across the curve. Slight

misses in Japanese PPI data have been shrugged by the space, while BoJ Gov

Kuroda offered little new in his latest address.

- Turning to Australia, YM +1.5 & XM +0.5. Aussie yield curve has bull

steepened. Bills trade -2 to +1 tick through the reds. Domestically, Q3 wage

price index matched forecasts, while Westpac Consumer Confidence Index improved.

The AOFM auctioned A$800mn worth of the 1.50% 21 June 2031 ACGB.