Focus fell on a speech from RBA Gov....>

BOND SUMMARY: Focus fell on a speech from RBA Gov Lowe, who noted that there are

limits to what further monetary easing could achieve. He also pointed to a

difficult global environment, where downside risks are tilted to the downside,

while further rate cuts are expected in major economies.

- YM & XM both trade 2.0 ticks lower, off of lows touched on the back of RBA

chief's remarks. Yields last seen 1.7bp to 2.1bp higher across the curve, with

some bear flattening apparent. Bills trade 1-3 ticks lower through the reds.

- T-Notes stuck to a tight range, last trade +0-03 at 127-19+. Cash Tsy yield

are seen unch. to 0.4bp higher, with Eurodollar contracts sitting unch. to 0.5

tick higher through the reds. Little reaction noted to U.S. Pres Trump's

comments from over a weekend. As a reminder, Trump touted fresh sanctions on

Iran & said that he never threatened demoting Fed Chair Powell.

- JGB futures last trade at 153.81, 12 ticks below settlement, pressured by a

recovery in the Nikkei 225. The yield curve bear steepened a tad.

- German FI little changed after the FT reported that the EU will hold off

measures vs. Italy this week. Bunds -0.01, Bobls +0.02, Schatz unch.