Core FI was subjected to choppy........>

BOND SUMMARY: Core FI was subjected to choppy trade with trade war source piece

related flows the order of the day in Asian hours. To recap, the impending

ministerial level DC trade talks were never going to provide the ultimate end

game to the trade war, but the tone of the meeting's conclusion and any fall out

will likely be key for risk assets in the coming days. The aforementioned source

reports have clouded the picture, with some suggesting that the talks may be

curtailed, while others have pointed to the potential for concessions from the

U.S. side.

- T-Notes last +0-05 at 131-14, with some light bull steepening seen in the cash

space. Eurodollar futures trade 1.5-2.0 ticks higher through the reds.

- JGB futures trade 1 tick lower on the day, unwinding virtually all of their

overnight session downtick, with the curve twist flattening in the wake of a

solid 30-Year auction.

- Aussie Bonds have had little to go off in terms of idiosyncrasies, with local

data looked through as the trade war took hold of broader price action. YM +0.5,

with XM -1.0. Bills trade unchanged to 2 ticks higher through the reds.