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Core global FI has been underpinned....>

BOND SUMMARY
BOND SUMMARY: Core global FI has been underpinned from the off, and failed to
get anywhere near neutral levels in a headline light session that was driven by
weekend news flow, namely the escalation in the Sino-U.S. trade war. The market
regained some composure with Chinese VP Liu reiterating that China remains
willing to resolve the dispute via calm negotiations & as the PBoC seemingly
widened the counter-cyclical adj. factor in its latest USD/CNY fixing.
- T-Notes last +0-12+ at 131-11 with the cash curve bull steepening. Eurodollar
futures trade 2.5 to 5.0 ticks higher.
- In Aus YM +5.0, with XM +9.0. Bills deal 2-5 ticks higher through the reds.
- JGB futures registered fresh all-time highs, and last deal at best levels +35
ticks on the day, with the curve bull flattening. The BoJ left the size of its
10-25+ Year JGB purchases unchanged, with the offer to cover ratio rising for
the 10-25 Year bucket and edging lower for the 25+ Year bucket. The average
yield spread moved further into negative territory for both buckets.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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