A strong Caixin manufacturing PMI......>

BOND SUMMARY: A strong Caixin manufacturing PMI survey released out of China

inspired recovery in risk appetite, diverting attention away from earlier trade

war concerns. Elsewhere, U.S. Pres Trump's interview w/UK's Nigel Farage and the

unfolding impeachment probe drew interest, with little material impact on the

space. T-Notes trade -0-02+ at 130-07. Cash Tsy yields sit 0.6-1.4bp higher, the

curve is marginally flatter. Eurodollars are unch. to 2.5 ticks lower thru reds.

- JGB futures were bid from the off as a follow-through from yesterday's moves

in Europe & the U.S.; a surprising uptick in Japanese unemployment may have

helped as well. They eased off from highs post-lunch and trade at 154.43, 48

ticks above settlement. Cash JGB yields dropped across the curve. The BoJ

conducted its 5-10 Year Rinban ops, leaving the purchase size unch,.

- Australian YM last seen +2.5, XM +3.5. Aussie yield curve runs flatter, after

yields played catch-up with Tsys at the open and now trade 1.7-3.6bp lower.

Bills trade 1-2 ticks better off. The AOFM auctioned A$800mn worth of 1.50% 21

Jun 2031 ACGB; bid/cover was higher, but the previous issuance size was A$1.2bn.

Little reaction seen to the local PPI, CoreLogic House Px & m'fing PMI surveys.