Focus in the Asia-Pacific session so...>

BOND SUMMARY: Focus in the Asia-Pacific session so far has remained on the

recent developments in global trade and geopolitics. As a reminder, yesterday

saw U.S. President Trump scale back his usually combative rhetoric & point to

the potential for easing tensions with China & other trade partners. Last-ditch

coalition talks in Italy and Brexit matters remain closely watched.

- T-Notes have picked up a small bid and last trade +0-05+ at 130-30+. Cash Tsy

yield curve has shifted slightly lower. Eurodollar contracts sit 0.50 to 3.0

ticks higher through the reds.

- JGB futures have dropped and last can be seen at 155.06, 25 ticks shy of

settlement as participants absorb overnight news. A positive showing from the

Nikkei 225 has added weight to the space. Japanese yield curve has bear

steepened. Little reaction noted upon the release of local PPI services, focus

moves to the liquidity enhancement auction for 15.5-39 Year JGBs.

- Aussie YM last trades -4.0 ticks, XM -4.5 ticks. Cash yield curve is higher

and flatter, yields sit 3.7-4.5bp better off. Bills last seen 1-5 ticks lower

through the reds. RBA Dep Gov Debelle will speak later today.