Core bond markets a little whippy......>

BOND SUMMARY: Core bond markets a little whippy owing to trade war related

headlines, ultimately sitting around unchanged levels at writing. Early risk-off

flows retraced & more on the back of BBG's take on headlines from Fox re: Trump,

Mnuchin & Lighthizer talking on "trade progress." Looks like the BBG headline

condensed that a little too much when looking at the original tweet from a Fox

reporter. The working dinner between Chinese & U.S. ministers has now finished,

with discussions done for the evening & no agreement forthcoming. Increased

tariffs will go into play in ~3 hours if that is the case. This saw U.S. equity

index futures off best levels, with T-Notes moving back to neutral territory.

T-Notes last 123.30+, U.S. 10-Year cash Tsy yields last 2.457%, yields a touch

higher across the curve. Eurodollar futures last 0.5 tick higher to 1.5 ticks

lower through the reds. In the Aussie space, YM +0.5 tick, XM -1.5 ticks lower

ahead of the RBA's SoMP. YM/XM trades at 48.0 ticks, with the cash equivalent at

44.9bp. Bills trade unchanged to 2 ticks higher through the reds.

- JGB futures last -1 tick, the summary of opinions from the latest BoJ meeting

had little impact on the space. Yields a touch higher across the cash curve.