As mentioned elsewhere, risk-off.......>

BOND SUMMARY: As mentioned elsewhere, risk-off flows dominated the early part of

the session after the U.S. labelled China a currency manipulator, but the PBoC

fixing USD/CNY sub-7.00 and announcing the issuance of offshore CNH bills in

Hong Kong stemmed some of the worry, with global core FI unwinding the early bid

as we moved through the Asia-Pacific session

- T-Notes last -0-02+ at 129-24+, with the curve bear steepening, after the

early bull steepening gave way. Eurodollar futures trade 0.5 tick higher to 1.0

tick lower through the reds.

- JGB futures deal 5 ticks lower on the day, with a sloppy 30-Year auction

helping to extend twist flattening of the cash curve.

- In Australia, YM deals -2.5 with XM -1.5, leaving the curve a touch flatter on

the day as YM/XM deals at 35.5 ticks and the cash space plays catch up after the

elongated holiday. Bills trade 1 tick higher to 4 ticks lower through the reds.

The RBA decision is due shortly.