Friday's communique re: U.S.-China.....>

BOND SUMMARY: Friday's communique re: U.S.-China phase-one trade pact left

participants somewhat disenchanted with lack of clarity. Little new to rock the

boat on that front over the weekend and in early trade today. The focus is on

China, which injected CNY300bn via 1-Yr MLF at an unch. rate of 3.25%. Local

econ activity indicators included some green shoots, adding pressure to core FI.

- T-Notes trade -0-06+ at 128-26+; cash yields sit 1.6-2.0bp higher across the

curve. Eurodollars sit unch. to 2.0 ticks lower through the reds.

- JGB futures have lost ground, last deal +2 ticks vs. settlement at 152.30.

Yields are little changed. Flash Jibun Bank PMIs were out; a marginal miss in

the m'fing gauge was coupled with a slight beat in the services tally.

- Aussie YMH0 +4.0 & XMH0 +9.0. Yield curve has bull flattened. Bills are 2-6

ticks higher thru reds. The latest MYEFO update revealed budget lower surplus

forecasts over the projected horizon, in addition to a lower GDP projection for

FY19-20. Australian FinMin Cormann spoke to BBG, insisting that there is no need

for boosting fiscal stimulus. Re: local data, all three flash CBA PMIs slipped

deeper into contraction.