Core FI space has been limited after...>

BOND SUMMARY: Core FI space has been limited after China signalled that it will

crack down on IP violations, which remain one of the key sticking points in

trade talks with the U.S. A RTRS story citing officials as saying that there is

no "phase-two" agreement on the horizon has received less attention. In the

absence of any noteworthy regional data releases, trade war headlines have taken

the centre stage.

- T-Notes trade -0-01+ at 129-13. Cash Tsy yields -0.2bp to +1.0bp across the

curve. Eurodollars are -1.0 to +0.5 tick through the reds.

- JGB futures last deal at 153.25, 9 ticks higher vs. settlement. The latest

round of 1-5 & 10-25+ Year BoJ Rinban ops saw all the purchase sizes unchanged.

Elsewhere, the Nikkei reported that Japanese MoF considers increasing 40-Year

supply in FY2020, which might mean reducing 5- & 10-Year issuance. The story has

promoted some twist steepening in the cash yield curve.

- In Australia, YM is unch. & XM +1.5. Aussie yield curve has bull flattened,

with yields sitting 0.2-2.8bp lower. Bills trade unch. to -2 ticks through the

reds.