Confirmation re: an October............>

BOND SUMMARY: Confirmation re: an October Sino-U.S. ministerial level trade

meeting in Washington jolted core FI markets from their slumber (with early

trade limited by a delayed cash Tsy open on BrokerTec).

- T-Notes last -0-14 at 131-27, back from worst levels, with yields 2.9-4.9bp

higher and some bear flattening evident on the curve. Eurodollar futures deal

2.25-6.0 ticks lower through the reds.

- In Australia YM -3.5 with XM -4.0, also back from worst levels. YM/XM sits at

21.5 and the cash equivalent deals at 20.3bp. Bills are 2-4 ticks worse off.

- JGB futures sit 23 ticks lower on the day, back from worst levels. The

aforementioned news flow exacerbated some pre-auction concession, as the curve

steepened during the Tokyo morning. 30-Year supply saw the lowest cover ratio at

a 30-Year auction since November 2017, although the yield and price tails

narrowed vs. prior, allowing longer dated yields to move back from extremes in

the wake of the supply, as super-long paper unwound the aforementioned early

steepening.