A narrowing of fiscal differences at...>

BOND SUMMARY: A narrowing of fiscal differences at the extended EuCo gathering

hasn't resulted in a deal, yet, with the participants set to re-convene this

afternoon. Elsewhere, COVID-19 worry in the likes of the U.S., Spain, Italy and

Hong Kong, as well as simmering Sino-UK tensions, combined with the

aforementioned lack of commitment on the EU fiscal front, kept a lid on risk

appetite overnight, lending some light support to Tsys. T-Notes last +0-02+ at

139-14, holding a 0-04+ range, with yields sitting 0.2-1.3bp richer across the

curve, with light bull flattening evident.

- JGB futures recovered from worst levels, last unchanged on the day, with

little in the way of substantial underperformance in the long end for much of

the session, even ahead of tomorrow's 20-Year supply (although 20+ Year paper

perhaps lagged on the rebound from cheaps).

- Aussie bonds were also subjected to the broader ebb & flow, recovering from

worst levels. YM -0.5, XM -1.5. Local focus falls on Thursday's fiscal update

from Treasurer Frydenberg (see earlier bullets for details), RBA events slated

for the coming days and the COVID-19 situation.