Global trade tensions continue to......>

BOND SUMMARY: Global trade tensions continue to damage risk appetite as both

U.S.-China and Japan-South Korea trade rows keep intensifying, providing support

to the core FI space. Renewed demand for the paper was noted at the Tokyo equity

open as local benchmark stock indices slid on risk aversion.

- T-Notes last seen +0-02+ at 128-30. Cash Tsy yield curve runs steeper a tad,

with yields sitting 1.4bp lower to 0.1bp higher. Eurodollar contracts trade

unch. to 3.5 ticks higher through the reds. Comments from Fed's Brainard & ISM

non-m'fing headline today's docket in the U.S.

- JGB futures have added 15 ticks vs. settlement, last trade at 154.05, just off

the session high. JGB yield curve has bull flattened a touch. BoJ 5-10 Year

Rinban ops are due later today.

- Australian YM sits 2.5 ticks higher, with XM 1.5 tick higher. Bills last seen

1-3 ticks higher through the reds. AiG services PMI print was particularly

dismal, while the CBA equivalent was little changed vs. the flash estimate.

Melbourne Institute's inflation gauge is due later today. Cash bond markets are

closed for a bank holiday in New South Wales.