Light pressure on the back of a BBG....>

BOND SUMMARY: Light pressure on the back of a BBG headline which noted that

China is said to be preparing to buy more U.S. pork. This is a + at the margin,

but not a "critical issue" central to the underlying matters in the trade

dispute. Furthermore, Xinhua sources had already noted that "China supports

relevant enterprises to continue to purchase a certain amount of U.S. farm

products, including soybeans & pork." Elsewhere, Chinese diplomat Wang showed

little in the way of a tone change in the wake of Trump's hawkish rhetoric, a

further indication that the underlying issues evident in the trade war remain.

T-Notes -0-02+ at 130-20+, yields a touch lower. Block flow saw a buyer of the

USX9 160/158 1x2 put spread, a seller of the TYZ9 130/131 call spread & a buyer

of the FVZ9 119.75/120.50 call spread (all directions intimated by sources).

- The belly of the JGB curve outperformed again, with a soft 40-Year auction

providing some weight to super-long paper. Futures +31 last.

- Aussie paper edged lower in the wake of the latest RBNZ MonPol decision, which

saw the bank leave its OCR unchanged, while it failed to firmly commit to

further easing next month. YM -1.0, XM -1.5.