Early Asia-Pac trade saw Tsys draw.....>

BOND SUMMARY: Early Asia-Pac trade saw Tsys draw some modest support after the

NYT reported that "the Trump administration is considering limits to a Chinese

video surveillance giant's ability to buy American technology, people familiar

with the matter said, the latest attempt to counter Beijing's global economic

ambitions. The move would effectively place the company, Hikvision, on a United

States blacklist." This came after the Chinese ambassador to the U.S. noted that

the door is still open re: further trade talks. In a BBG interview 2019 Fed

voter Bullard suggested that the neutral rate is ~2%, so "if anything U.S rates

are a bit restrictive." Bullard also noted that U.S. rates are in a good place.

He alluded to the possibility of a rate cut even with the economy holding strong

to assert that the Fed is serious re: inflation target & its asymmetric nature

but suggested that such a move would be premature at present. T-Notes last

124-05, U.S. 10-Year cash Tsy yields last at 2.425%.

- JGB +2 ticks on a stellar 20-Year auction, which promoted curve flattening.

- Little to pen for the Aussie Bond space today outside of the lower fix in

3-Month BBSW. Bond futures and Bills trade around unchanged levels.