A limited liquidity backdrop was.......>

BOND SUMMARY: A limited liquidity backdrop was evident in Asia, given the well

documented, widespread holidays across the region, with the same set to hold

true in Europe.

- T-Notes continued to edge away from their late NY lows, but held a tight

range, on subdued volume, last +0-00+ at 139-02+, with yields 0.8-2.5bp richer,

as the curve bull flattens and swaps lag, at the margins. An intensification of

Sino-U.S. sabre rattling and reports of potential U.S. actions against China,

coupled with weak e-minis in the wake of Apple & Amazon earnings, were the major

supporting factors.

- JGB futures extended on their pullback from the overnight high, to trade

comfortably lower, with the front end/belly leading the way. We also saw a weak

round of supply for off the run 1-5 Year JGBs.

- In Australia, YM continues to sit where the RBA wants it, last +0.5, while XM

benefitted from the broader risk-off feel to the session after an early look at

the SYCOM lows, last +1.5. Dynamic also got some help from a fairly typical AOFM

issuance schedule, that isn't heavy on duration, at least by recent standards.