It has been a relatively quiet.........>

BOND SUMMARY: It has been a relatively quiet session for core FI so far, with

participants assessing the matters in Sino-U.S. trade relations. With the

phase-one deal already signed, questions emerge re: phase-two talks. U.S. Vice

Pres Pence claimed that they are already underway, despite earlier suggestions

from China's state media to the contrary. 

- T-Notes trade -0-00+ at 129.10+, while cash Tsy yields have broadly inched

higher. Eurodollar futures are unch. to -0.5 tick through the reds.

- JGB futures last seen at 152.02, +14 ticks vs. settlement. Contract has been

unfazed by the local data (in-line PPI & a beat in core machine orders) or the

latest round of BoJ 5-10 Year Rinban operation, which saw the size of purchase

stay unchanged. Yields sit slightly shy of neutral levels.

- In Australia, YM +2.5 & XM +3.5 at typing. Yields sit 1.9-3.1bp lower across a

flatter curve. Bills last seen unch. to +2 ticks through the reds. Little in the

way of reaction noted to the release of Australian housing finance data.