Hopes re: co-ordinated G7 easing.......>

BOND SUMMARY: Hopes re: co-ordinated G7 easing have receded a little ahead of

today's phone call, with RTRS sources suggesting that the draft communique, for

now, "does not specifically call for new government spending or coordinated

interest rate cuts by central banks." The NY/Asia-Pac crossover saw ECB

President Lagarde point to a willingness to use targeted measures if deemed

necessary. T-Notes followed the broader ebb & flow of risk-appetite during.

Contract last -0-08 on the day at 134-27+ after a relatively sharp sell off late

Monday. Curve sees bull steepening in play, with yields 3.9-5.6bp softer across

the curve. Eurodollar futures 1.25-2.0 ticks lower through reds.

- Choppy action for Aussie bonds after the prospect of tgtd fiscal easing was

confirmed by PM-Morrison pre-RBA. The RBA delivered 25bp cut, pledged to

maintain liquidity, highlighted the impact of coronavirus on domestic econ

(despite a relatively upbeat assessment of domestic matters ex. virus) & lowered

bar re: further easing. YM finished unch., XM +1.0, Bills -2 to +3 thru reds.

- JGBs struggled. Low take-up in the 2nd round of BoJ repo ops in as many days,

with 10-Year auction also very weak. Futures -19, although some way off lows.