Core FI faced some pressure in.........>

BOND SUMMARY: Core FI faced some pressure in reaction to an FT headline

suggesting that the U.S. considers removing some of its tariffs on China. That

said, the impact has been limited with little follow-through as the full piece

was far more caveated than the headline alone. The reaction to U.S. Pres Trump's

comment that "China wants to make a deal badly" has been very muted. Chinese

Pres Xi speaks at a major trade expo at writing. T-Notes trade -0-01+ at 129-17,

cash Tsy yield curve has bear steepened. Eurodollars -0.25 to +0.5 thru reds.

- JGB futures last trade at 154.09, 31 ticks below settlement; a downtick noted

as the BoJ conducted its Rinban ops; the Bank trimmed the size of its 10-25 Year

JGB purchases, while leaving the sizes of 1-3, 3-5 and 25+ Year transactions

unchanged. JGB yields sit higher across the slightly steeper curve. BoJ Gov

Kuroda offered nothing new in his latest address.

- In Australia, YM -1.5 & XM -2.5 at typing. Aussie yield curve has steepened,

with yields sitting 0.6-1.5bp higher. Bills last seen unch. to 2 ticks lower

through the reds. WE have seen mixed services PMI surveys from CBA & AiG. The

focus is now squarely on the imminent monetary policy decision from the RBA.