Brexit saga & U.S.-China trade.........>

BOND SUMMARY: Brexit saga & U.S.-China trade matters in focus from the off. UK

MPs passed an amendment withholding approval for the Brexit deal until relevant

legislation is adopted, which forced the PM to request a Brexit delay (though he

attached a note outlining his well-known stance re: extension). Elsewhere,

Chinese VP Liu noted progress in "phase one" deal, but stressed the need for

mutual respect. T-Notes last seen -0-02 at 129-31, cash Tsy yields little

changed across the curve. Eurodollars sit 0.5-1.0 tick lower through the reds.

- JGB futures last trade at 154.06, 17 ticks shy of settlement. They have erased

the initial gains, with the downside move ignited around the Tokyo equity open.

Cash JGB yields sit around unchanged levels. Over the weekend BoJ Gov Kuroda

said that the BoJ will "certainly" reduce short- to medium-term interest rates

if it needed to ease MonPol. Today's round of 1-10 Year Rinban ops saw all

purchase sizes unch. Little reaction was seen to local trade data.

- Australian YM -1.5 & XM -3.5. Aussie bond yields sit 1-2-3.2bp higher, the

curve runs a bit steeper. Bills are unch. to -2 ticks. As we flagged earlier,

today's large coupon payments & bond redemption may inspire reinvestment flows.