Core global bond markets have drawn....>

BOND SUMMARY: Core global bond markets have drawn support from the latest round

of trade rhetoric from U.S. Tsy Sec Mnuchin & Trade Rep. Lighthizer, made ahead

of the futures close on Monday. Japan's return from the elongated golden week

holiday has likely helped to support the move, as well as volumes.

- T-Notes sit at the lower end of their Asia-Pacific range, but still

comfortably away from their NY low. The belly has seen some marginal

outperformance in the cash space. T-Notes last 123.26+, U.S. 10-Year cash Tsy

yields last 2.476%. Eurodollar futures trade 0.5-3.5 ticks higher through the

reds.

- JGBs sit 14 ticks higher at writing, with the curve bull flattening after the

elongated holiday. Participants await 1-5 & 10-25+ Year Rinban BoJ operations.

- Aussie Bonds back from best levels, largely tracking Tsys ahead of today's

domestic event risk (RBA decision, and to a lesser extent, retail sales & trade

balance). YM last unch. XM -0.5 tick. YM/XM trades at 52.0 ticks, with the cash

equivalent at 48.4bp. Bills trade unchanged to 1 tick higher through the reds.

- German FI a touch higher; Schatz +1.0 tick, Bobls +5.0 ticks, Bunds +15 ticks.