Participants keep searching for........>

BOND SUMMARY: Participants keep searching for clues re: U.S.-China trade

relations, after yesterday's speech from U.S. Pres Trump failed to remove

uncertainty. Meanwhile, the RBNZ unexpectedly left its OCR unchanged today,

defying calls for a 25bp cut, which has applied some pressure to core FI space.

T-Notes trade off an earlier high of 128-17, last -0-02+ at 128-14+. Cash Tsy

yield curve has bull flattened a touch. Eurodollars up to -1.5 tick thru reds.

- JGB have advanced amid a sell-off in the local equity benchmarks and last sit

+22 ticks vs. settlement at 152.81. The RBNZ decision triggered a quickly

recouped downtick. Cash JGB yields are broadly lower across the curve. Slight

misses in Japanese PPI data have been shrugged by the space, while BoJ Gov

Kuroda offered little new in his latest address.

- In Australia YM +1.5 & XM +1.5; the space responded to the RBNZ decision.

Aussie yield curve runs steeper, with yields sitting 0.9-2.1bp lower across the

curve. Bills last trade -1 to +1 tick through the reds. Domestically, Q3 wage

price index matched forecasts, while Westpac Consumer Confidence Index improved.

The AOFM auctioned A$800mn worth of the 1.50% 21 June 2031 ACGB.