Core FI space under pressure...........>

BOND SUMMARY: Core FI space under pressure following a round of positive trade

comments from White House adviser Kudlow. He noted that although the U.S.-China

phase-one deal is not done yet, the two sides are "coming down to the short

strokes" and their negotiators remain in touch. Top trade envoys from the U.S.

and China will speak on the phone later today.

- T-Notes trade -0-06+ at 129-04+. U.S. Tsy yields trade 1.2-1.9bp higher across

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

- JGB futures last seen at 153.23, 11 ticks above settlement. Cash JGB yields

sit slightly lower across the flatter curve. The BoJ left the sizes of its 10-25

& 25+ Year purchases unch. Focus turns to final Japanese industrial output data.

- In Australia, YM sits +0.5 with XM +2.5. Cash yield curve runs flatter and

sits lower. Bills trade -1 to +1 tick through the reds. The AOFM published their

weekly issuance schedule. RBA Dep Gov Debelle is set to speak shortly.