USD/JPY last up 19 pips at 108.94,.......>

DOLLAR-YEN: USD/JPY last up 19 pips at 108.94, getting a small boost from some

upside in the US dollar. The pair earlier touched a session low of 108.50 on

risk off sentiment in Asia, but bounced and rose to highs of 109.06 on touted

demand heading into the Tokyo fix. 

- The Nikkei 225 is down 705 points at 21,185 after another rout in US stocks on

Thursday. 

- The USD stronger, Fed's George on the wires earlier saying that 3 hikes this

year was reasonable & that a tight job market could push inflation higher. Other

reports shortly after said wrangling in the US over the funding bill was

ongoing, the next vote is take place from 0300GMT-0600GMT, which would put it

right up against the deadline. 

- Price action seems to be dictated by US stock futures, e-mini S&P 500 last

down 0.75 points after earlier being around 7 points higher. This led to a sell

off in UST's which had been creeping higher, higher yields then boosted the USD.

- UST price action is dictating movement for JGB's and Aussie bonds amid a lack

of catalysts.