Core FI paper has consolidated after...>

BOND SUMMARY: Core FI paper has consolidated after ticking higher initially on

the back of the broader cautious feel. Investors mostly shied away from risk

assets as they prepare for the the resumption of key U.S.-China trade talks, as

well as MonPol decisions from the Fed & BoJ coming up this week. Markets also

digested late Friday's comments from U.S. Pres Trump, who failed to clearly rule

out currency intervention to weaken USD, as did his adviser Kudlow.

- T-Notes last +0-05+ at 127-12+, just shy of highs. Cash Tsy yield curve has

bull steepened a touch, Eurodollars are 1.0-3.0 ticks higher through the reds.

- JGB futures eased off & last trade 1 tick below settlement, at 153.72. Modest

bid was noted earlier in the session as the Nikkei 225 slid deeper into negative

territory. Better than exp. Japanese retail sales were ignored. JGB yields are

little changed across the curve.

- Australian YM sits +3.0 ticks, XM +3.0 ticks as well, both have consolidated

after the initial rally. Aussie bond yields are seen 2.8-3.8bps lower across the

curve. Bills are trading 1 tick lower to 4 ticks higher through the reds.

- In Europe, Bunds +0.22, Bobls +0.05, Schatz +0.010. Spanish CPI hits today.