Conflicting impacts of central bank....>

BOND SUMMARY: Conflicting impacts of central bank easing bets on the one hand

and recovery in risk appetite triggered by positive signals re: U.S.-China trade

talks on the other, have kept core FI space range-bound.

- T-Notes have edged lower and last trade -0-02 at 127-14. Cash Tsy yields are

0.4-1.0bp higher across the curve, with Eurodollar contracts last seen 0.25-1.5

ticks lower through the reds. Focus remains on tomorrow's FOMC MonPol decision.

- JGB futures are off of yesterday's highs, but still at elevated levels;

finished the morning session at 153.71, 18 ticks above settlement. Cash yields

are 1.2-4.0bp lower across the curve. Worth highlighting that Japanese 10-Year

yield neared the lower end of the BoJ range. Reaction to the latest Japanese

trade data was muted, while the BoJ left the size of its 10-25+ Year JGB

purchases unch. vs. the prev. ops.

- In Australia, both YM and XM trade 2.5 ticks higher. Cash yields trade

2.3-3.0bp lower across the curve, with bills last seen unch. to 3 ticks higher

through the reds. Today's supply of the 1.50% 21 June 2031 Bond saw a lower

cover ratio than the prior auction.