Core FI have traded with a heavy.......>

BOND SUMMARY: Core FI have traded with a heavy tone, weighed on by official

rhetoric out of the U.S. Tsy Sec Mnuchin outlined daily conversations with Fed

Chair Powell, while stressing that the President is "committed to using all

tools for the economy." The POTUS earlier said that he will unveil economic

measures on Tues & pointed to a potential for payroll tax cuts. T-Notes last

seen -1-09 at 138-05+. Yields trade 1.2-11.0bp higher, curve runs steeper.

Eurodollars last seen 0.5-1.5 tick lower through the reds.

- Japanese official have stuck to their earlier communique, noting the sense of

"urgency" as they monitor "nervous moves" in the mkts. JGB futs sit at 154.78,

54 ticks shy of settlement, with the Nikkei 225 trimming losses. Cash yield

curve has bear steepened. The focus turns to 5-Year JGB supply.

- Aussie bond futs are stabilising; YM -4.0 & XM -6.0. Curve runs steeper, with

yields sitting 2.7-7.4bp higher. Bills trade -3 to +1 through the reds. Little

reaction seen to Australia's NAB Business Confidence Survey, as broader

cross-currents dominate. Likewise, China's inflation figures provoked a muted

mkt response. The AOFM auctioned A$100mn of the 2.50% 20 Sep '30 I/L Bond.