Caution re: developments in the........>

BOND SUMMARY: Caution re: developments in the Sino-U.S. trade war underscored

the session, with cash Tsys bid on the back of the long weekend, lending support

to T-Notes, while FV/TY flattener flows also helped to support the contract. The

continued uptick in headline Chinese CPI Y/Y/PPI Y/Y continuing its move lower

probably aided the dynamic as well. T-Notes last +0-06 at 130-13, with yields

3.5-4.7bp lower across the curve. Also worth flagging that we saw the 2x3 USZ9

162.00/159.00 put spread blocked, with 5.0K of the 162.00 puts trading vs. 7.5K

of the 159.00 puts. Eurodollar futures 1.5-4.0 ticks higher through the reds.

- Aussie bonds looked through the minutes of the RBA's latest MonPol decision,

which contained some interesting discussion points, but offered little to alter

the broader MonPol outlook. YM +2.0 with XM +3.5, leaving YM/XM at 34.5. Bills

deal unchanged to 3 ticks higher through the reds.

- JGB traders returned from a long weekend, futures -7 last (albeit off Friday's

overnight lows) as the cash curve twist flattens. The BoJ left the size of its

1-10 Year Rinban ops unch., with the 1-3 Year offer to cover ratio holding

steady, 3-5 Year cover ratio ticking higher & 5-10 Year cover ratio softening.