Core FI instruments have eased off a...>

BOND SUMMARY: Core FI instruments have eased off a tad, even as familiar risks

remain in play. Focus remains on U.S.-China trade matters. Amid speculations re:

potential for a partial accord, the U.S. blacklisted eight Chinese tech

companies post-NY hours, in what may add to bilateral tensions. However, Chinese

MOFCOM confirmed that VP Liu will lead a delegation for Thursday's high-level

negotiations. T-Notes -0-04 at 131-12+. Cash Tsy yield curve is slightly higher

& steeper. Eurodollars unch. to 2.0 ticks lower through the reds.

- JGB futures ticked lower as the Nikkei 225 opened in the green; they last deal

at 155.09, 15 ticks shy of settlement. JGB yields are broadly higher across the

curve. Japanese earnings and spending figures met consensus forecasts, while BoP

current account surplus was wider than expected. Japanese focus turns to Eco

Watchers Survey and an enhanced liquidity auction for off-the-run 5-15.5 Year

JGBs.

- In Australia, YM last -2.0, XM -1.0. Cash bonds reopen after a long weekend in

Sydney/NSW, yields trade 1.3-2.7bp lower across the curve. Bills 1-3 ticks lower

thru reds. Muted reaction seen to local ANZ job adverts & NAB biz. conf. survey.