Continued focus on Fed Funds futures...>

BOND SUMMARY: Continued focus on Fed Funds futures shifting to price in a

limited chance of NIRP in the U.S. in '21 kept T-Notes in a tight range

overnight, even with broader risk-on flows observed in FX & e-minis. Potential

for further PBoC easing and confirmation of a phone call between top level

Sino-U.S. trade negotiators did little to move the space, with the latter light

in the way of anything concrete but contained the now standard positive airings.

T-Notes last -0-03 at 139-06+, yields a mere 0.2-0.8bp richer across the curve.

- JGB futures softened in afternoon trade, after RTRS noted comments from

Finance Minister Aso: "government will respond appropriately to ruling party

lawmakers' calls for more steps to cushion the economic fallout from the

coronavirus outbreak...would consider whether to use budget reserve or compile

another extra budget to fund additional economic steps." Contract last +2 on the

day, belly sees some outperformance in cash trade, swaps wider ex 10s & 20s.

- Aussie bond futures saw some flattening & looked thru the RBA's SoMP.

Confirmation of a syndication of a new ACGB Dec '30 had little impact, after

earlier rumours on the matter. YM +1.5 (aided by a strong auction), XM +3.5.