Core FI markets were happy to hold.....>

BOND SUMMARY: Core FI markets were happy to hold in familiar territory, despite

the continued uptick in global equity markets during Asia-Pac hours.

- T-Notes last -0-03 at 139-02, with yields 0.8-1.4bp cheaper across the curve.

Eurodollar futures sit unchanged to 0.5 tick lower through the reds.

Participants will have to weigh up the current risk positive gyrations, along

with the impact of the incoming Tsy coupon supply and Sino-U.S. tensions as U.S.

participants return to market.

- JGB futures are 2 ticks higher on the day, even with equities well bid, while

cash trade has seen the curve twist steepen, aided by a fairly tepid round of

40-Year supply (outlined in earlier bullets). Focus now moves to Wednesday's

decision re: the supplementary budget.

- The Aussie bond curve has seen some light steepening, after the recent run of

flattening. YM unch., XM -1.5. Little to really note in terms of local headline

flow, with linker supply well received, and focus moving to tomorrow's ACGB '30

supply and completed construction work data. RBA repo injections seemingly

promoted some twist steepening of the Bill strip.