Participants weren't keen to buy.......>

BOND SUMMARY: Participants weren't keen to buy safe haven assets after China

said that parts of the text of the "phase one" pact w/U.S. are "basically

completed." The weekend news flow was aplenty, with U.S. forces taking down the

ISIS leader & German/Italian ruling coalitions losing local elections.

Elsewhere, Argentine incumbent Pres Macri conceded defeat overnight, while mkts

brace themselves for fresh developments re Brexit & potential UK snap election.

- T-Notes consolidated after posting a downtick, amid no evident headline

drivers; they trade -0-03 at 129-14. Cash Tsy yields sit 1.4-2.1bp higher, a bit

of curve steepening evident. Eurodllrs trade 0.25-1.5 tick lower thru reds.

- JGB futures ticked away from lows after lunch and last trade at 153.90, 19

ticks worse off. Cash JGB yields are broadly higher, the curve is slightly

flatter. An in-line Japanese services PPI print failed to move the space. The

BoJ conducted its 1-10 Year Rinban ops, leaving the sizes of all purchases unch.

- Australian YM -3.5 & XM -4.5. Aussie yield curve runs steeper, with yields

sitting 3.0-4.7bp higher. Bills trade 2-4 ticks lower through the reds. The APRA

proposed looser capital requirements for the gov't's first home buyers scheme.