Core FI space has consolidated after...>

BOND SUMMARY: Core FI space has consolidated after the moves driven by a

statement re: an earlier speech by NY Fed Pres Williams, which clarified that

the points made were of academic nature rather than relevant to the upcoming

FOMC meeting.

- T-Notes trade -0-01 at 127-19+, with yields trading 0.1bp to 2.7bp higher

across the slightly flattened curve. Eurodollars are 1.00-2.75 ticks lower

through the reds. No reaction to headlines stating that top U.S. & Chinese trade

off'ls spoke by phone as planned. More Fedspeak coming up today from Bullard &

Rosengren, U. of Mich. Sentiment is also worth watching.

- JGB futures still at elevated levels, last deal at 153.62, 7 ticks better off

despite stronger equity markets in the region. Cash JGB yields sit lower a tad.

3-Month Bills will be offered today, with a 1-5 Year JGB liquidity enhancement

auction also expected.

- Australian YM last seen 0.5 tick higher, XM 1.0 tick higher, both still

operating within tight ranges. The yield curve has bull flattened. Bills last

seen unch. to 2 ticks higher through the reds.