Focus remained on U.S.-Mexico trade....>

BOND SUMMARY: Focus remained on U.S.-Mexico trade talks, with both sides noting

progress, but not enough to reach an agreement. At the moment, U.S. tariffs on

Mexican goods are set to take effect on Monday, but negotiations will continue

later today. Comments from PBoC Gov Yi had no tangible impact on the space.

- T-Notes operated within a tight range and last trade +0-00+ at 126-30+. Cash

Tsy yields are unch. to 0.3bp higher across the curve, while Eurodollar

contracts are unch.-2.0 ticks lower through the reds.

- JGB futures last trade at 153.56, 4 ticks above settlement, having turned bid

as the BoJ increased the size of its 10-25 Year purchases after reducing the

monthly purchase frequency to 3x from 4x in its June plan. Worth noting that

should there be no more tweaks to the sizes of purchases, the BoJ will buy Y40bn

less 10-25 Year JGBs in June than it did in May. The BoJ's activity triggered

some twist flattening, with yields now trading 0.6bp higher to 1.5bp lower.

- YM last seen 2.5 ticks lower, with XM 2.0 ticks lower. The yield curve has

bear flattened. Bills are trading 2 to 3 ticks lower through the reds.

- Bunds last -0.05, Bobls -0.02, Schatz +0.005.