Core global FI drifted lower in........>

BOND SUMMARY: Core global FI drifted lower in Asia-Pac hours. Late NY saw the

U.S. remove China's FX manipulator title in the latest version of the

semi-annual FX report from the U.S. Tsy. Comments from U.S. TR Lighthizer,

pointing to the phase 1 Sino-U.S. trade deal being "about finished" re: the

translation, as well as an inclusion of commitments re: FX manipulation, also

helped during Asia-Pac hours. The breakdown of Chinese trade data for Dec showed

stronger than exp. import & exports, which were of course subject to base

effects, while Sino-U.S. trade fell 10.7% Y/Y in 2019. Tsys drifted lower, but

were fairly limited in terms of range, yields +0.6-1.2bp across the curve at

writing, T-Notes 0-03+ lower at 128-26, just off lows. Eurodollar futs 0.5 to

1.0 tick lower through the reds. The Tsy space saw pockets of selling in TYH0,

and decent options activity in the TY & US space that will we recap later.

- JGB futures were lower on catch up from the elongated weekend, before wider

spreads in the BoJ's 10-25+ Year Rinban ops pressured the space, although it was

the belly of the curve that underperformed ahead of tomorrow's 5-Year supply.

- Aussie bonds followed the global impulse, YM -2.5, XM -5.0.