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Global core FI drew support during.....>

BOND SUMMARY: Global core FI drew support during the final Asia-Pac session of
the week, aided by the breakdown of the ruling Italian gov't & a BBG sources
piece suggesting that "the White House is holding off on a decision re: licenses
for U.S. firms to restart business with Huawei after Beijing said it was halting
purchases of U.S. ag goods." This resulted in T-Notes breaching Thursday's hi,
although the contract is back from his. Curve has bull steepened. The highlight
on the flow front came in the form of a block trade which saw the USV9 158/155
1x2 put spread blocked in 5.0K x 10.0K vs. 4.0K of the USU9 165.00 calls.
- AU Bonds experienced some chop over RBA Gov. Lowe's testimony to a
parliamentary committee. Taking a hit on the back of Lowe's suggestion that the
econ may have reached a "gentle turning point," although talk surrounding lower
rates & extraordinary measures ultimately provided support (even as such a
scenario was deemed a very low prob. outcome at present). The latest RBA SoMP
highlighted downside risks, both externally & domestically. YM +2.0 XM +4.0.
- JGB futs logged all-time highs even as the BoJ cut the size of 3-5 & 10-25 Yr
buying (it did lift the size of 1-3 Yr purchases). Contract +22, curve flatter.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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