Participants have remained cautious....>

BOND SUMMARY: Participants have remained cautious so far, with core FI edging

away from lows. On the global trade front, China was said to be considering new

measures to stabilise trade, while Japan approved of the first round of tech

exports to South Korea since tightening export controls. T-Notes have ticked

away from lows, last trade -0-08+ at 129-28+. Cash Tsy yields sit 1.2-2.5bps

lower across the curve. Eurodollars unch. to 4.5 ticks lower thru the reds.

- JGBs have followed T-Notes in moving away from lows, they last trade at

154.44, 5 ticks above settlement. JGB yields sit a touch lower across the curve.

Little reaction noted to the latest round of Japanese BoP data. 10-Year JGBis

supply & eco watchers survey take focus from here.

- In Australia, YM trades -2.0 ticks, XM +1.5 ticks. Aussie yield curve has

twist flattened, with yields sitting -3.3bps to +2.2bps. Bills are 1-2 ticks

lower through the reds. RBA Asst Gov Bullock gave a speech on business &

financial stability, noting that Australia's largest retailers are generally

well-placed to face the challenge of sluggish domestic economy. China's trade

data, due later today, will draw some attention.