Core FI lost steam amid pre-FOMC.......>

BOND SUMMARY: Core FI lost steam amid pre-FOMC positioning, despite White House

advisor Navarro's (known China hawk) pushback against y'day's reports re:

potential delay of Dec 15 tariffs on China. JGB futs were heavy, which seemed to

spill over into the broader FI space; their sell-off was limited by the 152.00

level. Some pointed to the rollover in lead contract due later this week as

adding pressure to JGB futs. They now trade at 152.06, -33 ticks vs. settlement.

Yield curve is slightly flatter; 10-Yr yield's engagement w/zero lvl was in

focus again. Per the Nikkei, Japan will have to sell Y2.0tn deficit-covering

bonds to fund its '19 extra budget. Local PPI figures slightly topped exp.

- In Australia, YM -3.0 & XM -5.0. Yield curve runs steeper. Bills trade -3 to

+3 ticks through the reds. Little reaction noted to a deterioration in Westpac

cons. conf. Elsewhere, the AOFM auctioned A$500mn worth of the 2.75% 21 Apr 2024

ACGB. The RBC said that they exp. the RBA to trim the cash rate to 0.25% &

announce a min. A$40bn QE package in early '21.

- T-Notes range-bound, last seen -0-02 at 128-27+. Cash yields sit near neutral

levels. Eurodollars sit -0.5 to +0.5 tick through the reds.