A degree of risk aversion has been.....>

BOND SUMMARY: A degree of risk aversion has been evident in early trade, core FI

have posted gains, but remained range-bound. With little fresh in the way of

headlines or regional data releases, suspicion falls on a follow-through from

U.S. Pres Trump's recent round of combative rhetoric re: trade relations with

China. In geopolitical news, Trump said that he received a letter from North

Korea's leader Kim, which contained much complaining about South Korea's

military drills and "a small apology" for the recent missile tests carried out

by Pyongyang. T-Notes last trade +0-01 at 129-23, cash Tsys are not traded in

Tokyo due to a market closure for a Japanese national holiday. Eurodollars are

0.5 tick lower to 1.0 tick higher through the reds. The move in T-Notes occured

in sync with a decline in S&P 500 futures.

- Aussie bond futures have edged higher, but remain in negative territory. YM

last seen 1.0 tick lower, XM 1.5 tick lower. Aussie bond yields sit 0.3-1.2bp

higher across the curve after easing off a touch. Bills trade unch. to 1 tick

better off. A$400mn of 3.25% 21 Jun 2039 Bond was auctioned earlier today, the

cover ratio was 2.42x vs. the prev. 2.30x.