Core FI retreated after White..........>

BOND SUMMARY: Core FI retreated after White House's Kudlow said that the U.S.

and China are very close to finalising their initial trade pact and negotiators

are in touch every day, even as the document is "not done yet." Kudlow added

that the POTUS is yet to make a decision on potential EU auto tariffs. Media

outlets differed in how they accentuated Kudlow's remarks, but mostly focused on

positive overtones as earlier it became apparent that top trade reps from

Washington & Beijing will hold a phone call today to address sticking points.

- T-Notes trade -0-07+ at 129-03+. Cash Tsy yields sit 1.3-2.4bp higher across

the curve. Eurodollars last seen up to 2.0 ticks lower through the reds.

- JGB futures seen at 153.15, +3 ticks vs. settlement. Cash JGB yields are

slightly lower across the curve, save for the super-long end. The BoJ left the

sizes of its 10-25 & 25+ Year purchases unch. Final Japanese industrial output

figures came and went, although they topped flash estimates.

- In Australia, YM -1.0 & XM +2.0. Cash yield curve twist flattened. Bills trade

1-2 ticks lower thru reds. The AOFM published the weekly issuance schedule (see

earlier bullets). RBA Dep Gov Debelle's address was devoted to mortgage arrears.