Tsys initially edged higher, as JPY....>

BOND SUMMARY: Tsys initially edged higher, as JPY strength set the tone ahead of

the elongated Japanese holidays, before the JPY faded & TU/US block stepeeners

were lodged, helping T-Notes off best levels. The flows likely helped to promote

modest twist-steepening of the curve in the cash space. Elsewhere, White House

economic advisor Kudlow told NewsMax that he thinks "the Fed is moving toward

rate cuts." T-Notes last 123.14, U.S. 10-Year cash Tsy yields last 2.531%.

- Aussie Bond futures blipped lower on the SFE re-open, but recovered, after

following Tsys lower on SYCOM in the wake of the ANZAC Day holiday. YM last

trades 1.0 tick lower, with XM -1.5 ticks. YM/XM trades at 53.5 ticks, with the

cash equivalent at 49.0bp. Bills trade unchanged to 2 ticks lower through the

reds.

- JGB futures edged higher ahead of the Japanese holidays, last 9 ticks better

off. Modest flattening crept into the cash space. Local data had little effect

on the space and the BoJ left the size of its 5-10 Year purchases unch.

- German FI futures traded in lacklustre fashion, and last sit virtually

unchanged.