China's comment that parts of the......>

BOND SUMMARY: China's comment that parts of the text of a "phase one" trade deal

with the U.S. are "basically completed" has been well received, but resulting

pressure on core FI space has been ltd. The focus remains of politics:

Brexit/potential for UK snap elex & Alberto Fernandez's victory in Argentina's

presidential election. No reaction seen to U.S. Pres Trump's announcement that

ISIS leader Baghdadi has been killed by U.S. special forces. T-Notes last trade

-0-00+ at 129-16+, with cash Tsy yields a touch higher across the curve.

Eurodollars are unch. to -0.5 tick through the reds.

- JGB futures slipped and trade at 153.90, 19 ticks shy of settlement. Cash JGB

yields broadly higher across the curve. As expected, Japanese services PPI has

failed to move the space. The BoJ conducted its 1-10 Year Rinban ops, leaving

the sizes of all purchases unchanged.

- In Australia, YM -3.0 & XM -4.0. Aussie bond yields sit 2.0-3.6bp higher

across the curve. Bills last seen 2-3 ticks lower through the reds. In the local

news, the APRA proposed looser capital requirements for the government's First

Home Loan Deposit Scheme.