Core FI paper was bid as risk..........>

BOND SUMMARY: Core FI paper was bid as risk appetite deteriorated overnight as

the impact of yesterday's de-escalation in U.S.-China trade war waned. Markets

moved on and focus returned to familiar concerns over intensifying turmoil in

Hong Kong and Italian political saga. The impact of a stronger than exp. PBoC

fix was negated by a string of misses in China's econ activity indicators.

T-Notes trade +0-04+ at 129-31, just shy of highs. Yield curve bull steepened,

with yields 1.0-4.8bp lower. Eurodollars are unch. to +5.5 ticks thru reds.

- JGB futures 13 ticks shy of settlement at 154.78. Yields are 0.2-2.7bp higher,

curve runs steeper. JGBs ignored a surge & beat in Japanese core machine orders.

- Aussie bond futures climbed; YM -2.0, XM -2.5 at typing. Aussie bond yields

trade -0.3bp to +2.1bp across the curve, bills sit 1-3 ticks lower thru reds.

Better than exp. wage price index applied some brief, light pressure to the

space. Westpac cons. conf. index rose a tad. The AOFM offered A$800mn of ACGB

2.50% 21 May 2030 today, attracting cover ratio of 3.69x vs. the prev. 2.69x.

- Bunds +0.08, Bobls +0.05, Schatz +0.015. Italian Senate summoned PM Conte to

address parliament on Aug 20; EZ & German GDP, French CPI in focus today.