China's off'l PMI readings from over...>

BOND SUMMARY: China's off'l PMI readings from over the weekend beat estimates,

applying weight to core FI space from the off. The m'fing gauge printed above

the breakeven 50 level for the first time in seven months. A fresh wave of

selling hit the space as cash Tsys re-opened in the red. Reports re: obstacles

in U.S.-China trade talks have failed to lend much support so far. T-Notes trade

-0-08 at 129-03+, hovering just above session lows. Yields trade 1.2-3.2bp

higher, the curve runs steeper. Eurodollars sit +0.25 to -3.5 ticks thru reds.

- JGB futures last seen at 152.95, -21 ticks vs. settlement. The daily chart

suggests the completion of a head & shoulders pattern upon the break of 153.03

during today's sell-off. Cash yields sit slightly higher across the curve. The

local data was mixed, has had little to no impact on price action. The latest

round of 1-5 & 10-25+ Year Rinban ops saw the BoJ leave all purchase sizes unch.

- Aussie YM -3.0 & XM -4.0; cash yields sit 2.1-4.7bp higher across the steeper

curve. Bills trade 1-3 ticks worse off through the reds. The AOFM auctioned

A$300mn worth of the 3.0% 21 Mar 2047 ACGB today. Australian data was mostly

underwhelming, which has likely cushioned losses in the local FI space.