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Early flows were decidedly risk-off,...>

BOND SUMMARY
BOND SUMMARY: Early flows were decidedly risk-off, on the back of weekend news
flow, namely U.S. President Trump's China tariff escalation tweets & to a far
lesser extent, the latest round of North Korean missile tests. Bonds then
stabilised, before they were jolted yet higher by the latest WSJ sources piece
which suggested that China is considering cancelling this week's trade talks
with the U.S. after Trump's threats.
- T-Notes deal 19 ticks higher, back from highs, but not by much, dealing at
123.30. Cash Tsys remain closed in Asia-Pacific hours owing to the ongoing
Japanese holidays. Eurodollar futures 2.0-10.5 ticks higher through the reds.
- Aussie bond futures remain comfortably higher on the session. YM last +4.5
ticks, with XM +6.0 ticks. Bills +1-4 ticks through the reds.
- German FI has followed the global impetus Schatz +1.5 ticks, Bobls +14.0
ticks, Bunds +47 ticks.
- A limited Asia-Pac session in terms of data flow, Chinese Caixin services PMI
provides the highlight. Headline risk around the official Chinese reaction to
Trump's tweet eyed.
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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