News flow on Sino-U.S. trade...........>

BOND SUMMARY: News flow on Sino-U.S. trade situation remained in flux, driving

the early round trips in price action, as White House adviser Navarro downplayed

an earlier WSJ source report pointing to a deadlock over farm purchases. But the

release of less than inspiring Chinese activity indicators provoked a durable

risk-off reaction, putting a fresh into core FI. Elsewhere, the space looked

through Fedspeak, with Daly & Harker saying that the economy is now in "good

place" after this year's easing. T-Notes sit -0-01 at 128-27+ and cash Tsy yield

curve bull flattened. Eurodollars last seen up to -0.5 tick lower thru reds.

- JGB futs trade at 153.13, +25 ticks vs. settlement. Today's 5-Year JGB supply

attracted relatively decent demand and saw a very marginal price tail, prompting

the paper to extend gains. Cash yield curve sits lower and runs flatter. The

local flash GDP data revealed a slightly larger than exp. economic slowdown.

- Aussie bond futures jumped after the release of weak domestic jobs data, which

the RBA is known to watch. YM +7.5, XM +9.5; cash yield curve has bull

flattened, yields sit 7.1-9.2bp lower. Bills last seen 4-10 ticks better off

thru reds. Little follow-through from RBA Dep Gov Bullock's comments.