Focus fell on tensions surrounding.....>

BOND SUMMARY: Focus fell on tensions surrounding yesterday's attack on two

tankers near the Hormuz Strait. The U.S. released a video allegedly showing that

Iran was involved in the assault. Comments from ex-PBoC Gov Zhou, who warned

against competitive devaluations amid trade war, also worried investors.

- T-Notes last trade +0-02 at 127-13+, while cash Tsy yields are sitting 0.8bp

to 1.5bp lower across the curve, with some bull flattening evident. Eurodollar

futures last deal 0.25 tick lower to 1.0 tick higher through the reds.

- JGB futures last trade at 153.54, 10 ticks above settlement, even as the

Nikkei 225 registered gains. Yields are 0.6bp lower to 2.2bp higher across the

curve, with the super-long end underperforming. The BoJ left the size of its

5-10 Year Rinban ops unchanged today.

- In Australia, YM trades 1.5 tick higher, with XM 3.5 ticks higher, aided by

revisions to RBA calls from NAB & RBC. Both now expect the central bank to trim

the cash rate more. Aussie bonds are 1.3bp to 3.8bp lower, with bull flattening

evident. Bills are trading 1 tick lower to 1 tick higher through the reds.

- Bunds +0.15, Bobls +0.04, Schatz +0.010.