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Friday's steepening bias spilled.......>

BOND SUMMARY
BOND SUMMARY: Friday's steepening bias spilled over into core FI in Asia with
focus on the U.S. Tsy's latest enquiry re: 50- & 100-Yr issuance & chatter re:
German fiscal stimulus. Optimistic overtures from WH econ advisor Kudlow re: the
potential for a Sep meeting between the U.S. & Chinese trade negotiators in
addition to some hope surrounding the potential for the "U.S. Commerce Dep't to
extend a reprieve given to Huawei" per a RTRS sources piece created some
optimism over the weekend. That was before Trump's latest batch of comments on
the matter, which were a little more hard-line, although it is worth reminding
that there has been some distinction between the admin's actions surrounding the
matter & what it permits at corporate level. Trump had earlier tweeted "We are
doing very well with China, and talking!" T-Notes -0-09+ at 130-20, with the
curve bear steepening. Eurodollar futures -2.0-4.0 ticks through the reds.
- JGB futures -0.04, cash curve steeper. No real reaction to the latest round of
BoJ Rinban ops (1-5 Year), which saw the purchase sizes left unch., cover ratios
ease & avg yield spreads move back into +ve territory.
- Steepening also in Aus with a poor ACGB '41 auction helping. YM -2.0, XM -4.0.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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