Participants have shied away from......>

BOND SUMMARY: Participants have shied away from risk assets ahead of the FOMC

MonPol decision and after RTRS source reports put a question mark over the

timetable of finalising phase one of the U.S.-China trade pact. News-wise, the

focus has also been on the approval of a Dec 12 elex in the UK, U.S. impeachment

probe & U.S. sanctions on Turkey. T-Notes trade +0-01+ at 129-10. U.S. Tsy

yields sit 0.4-1.3bp lower, with some curve flattening apparent. Eurodollar

contracts operate 0.75-1.0 tick higher through the reds.

- JGB futures advanced, finishing the morning session at 153.83, 16 ticks above

settlement. The yield curve has bull flattened. The local retail sales data

topped estimates, but this has failed to move the space. The BoJ conducted its

10-25+ Year Rinban operations, keeping all purchase sizes unchanged.

- Australian Q3 CPI report has taken the local focus today, with some minor

pressure to the space observed as headline figures matched expectations. That

said, the impact was modest & short-lived & Aussie bond futures are bid, with YM

last +2.0 & XM +4.0. Aussie yield curve has bull flattened, with bills 2.0-4.0

worse off. Bills trade -2 to +3 ticks through the reds.