Focus has fallen on U.S.-Mexico........>

BOND SUMMARY: Focus has fallen on U.S.-Mexico trade matters after the countries

wrapped up Wednesday's negotiations without a deal re: trade & immigration.

Nerves have been soothed somewhat by comments from U.S. Pres Trump who pointed

to progress in bilateral talks (albeit not enough) & confirmed that negotiators

will meet again on Thursday.

- T-Notes ticked higher on the Mexico headlines before easing off and last trade

-0-01 at 126-30+. U.S. cash Tsy yields are 0.7 to 1.1bp lower across the curve,

while Eurodollar futures last trade 0.5 to 2.0 ticks lower through the reds.

- JGB futures registered losses from the off and last trade at 153.49, 9 pips

lower on the day, but remain at elevated levels. Cash yields sit a touch higher

across the curve. Worth noting this comes ahead of a 15.5-39 year JGB enhanced

liquidity auction.

- YM trades 0.5 tick lower at typing, with XM dealing 1.5 ticks lower. Aussie

bond yields last seen 0.2bp lower to 1.7bp higher, with some modest twist

steepening evident. Bills trade 1 tick lower to 2 ticks higher through the reds.

Australian focus falls on trade balance data, due within an hour.