Yesterday's declaration from U.S.......>

BOND SUMMARY: Yesterday's declaration from U.S. FOMC that it may cut rates if

outlook worsens remained in focus, alongside regional central bank action. The

BoJ left its policy settings unch. today, voting 7 to 2 to keep yield curve

control, while RBA Gov Lowe noted that it is "not unrealistic" to expect a

further cut to the cash rate given persistent spare capacity in the labour mkt.

- T-Notes consolidated just shy of session highs and last trade +0-10 at

128-05+. Yields are 1.7bp to 4.3bp lower across the curve, with some bull

flattening apparent. Eurodollar contracts are sitting up to 5.0 ticks higher

through the reds. BBG reported overnight that U.S. Pres Trump thinks he has the

authority to oust Powell as Fed Chair (although does not plan to do it yet).

- JGB futures seen at 153.79, 15 ticks above settlement, as a stronger Nikkei

225 dragged them off highs. Yields eased a somewhat, esp. at the super-long end.

A post-MonPol presser with BoJ Gov Kuroda exp. in the London morning.

- Aussie bond yields are 3.0-5.2bp lower. YM & XM are 6.0 ticks & 5.0 ticks

higher respectively, aided by Lowe's speech, which pushed implied odds of an RBA

cut in Jul to ~70% from ~50%. Bills last seen 4-7 ticks higher through the reds.