Positive reports re: Sino-U.S. trade...>

BOND SUMMARY: Positive reports re: Sino-U.S. trade matters (albeit caveated), a

lack fresh dovish impetus from the RBA & and adjustment to the BoJ's latest

round of Rinban ops (designed to steepen the JGB curve) pressured core global FI

overnight.

- T-Notes last -0-04 at 129-14+, with the Tsy curve steepening as yields print

1.0-2.8bp higher on the day across the curve at writing.

- Aussie bond futures struggled post-RBA, with a lack of fresh dovish impulses

noted. YM -4.0 at writing, while XM trades 3.5 ticks lower on the day. Bills are

running 1-4 ticks lower through the reds.

- JGB futures were pressured by a reduction in the size of the BoJ's latest

10-25 Year Rinban ops, with that area of the curve underperforming in the wake

of the move. BoJ Governor Kuroda & his Deputy Amamiya offered up little new re:

MonPol in their latest addresses, although Kuroda suggested that the MoF could

issue more super-long JGBS to avoid a drop in yields, once again expressing his

preference for a steeper yield curve. JGB futures last print 43 ticks lower vs.

settlement, with a degree of catch up evident after the long weekend in Tokyo.