Risk appetite came under pressure as...>

BOND SUMMARY: Risk appetite came under pressure as news wires telegraphed

comments from White House advisor Navarro, who said that he has "no indication"

that Dec 15 tariffs on China will not take effect, joining his WH colleague

Kudlow in a pushback against yesterday's press reports suggesting potential for

a delay. T-Notes last trade -0-00+ at 128-29; cash Tsy yields sit slightly lower

across the curve. Eurodollars trade -0.25 to +0.5 tick through the reds.

Elsewhere, participants await today's decision announcement from the FOMC.

- JGB futures have dropped but still operate nowhere near yesterday's YtD low;

they now trade at 152.16, -23 ticks vs. settlement. Cash yield curve runs

flatter. The Nikkei reported that Japan will have to sell Y2.0tn worth of

deficit-covering bonds to fund its 2019 extra budget.

- In Australia, YM -2.0 and XM -4.0. Cash yields trade 1.9-4.1bp higher, curve

runs steeper. Bills last seen -2 to +2 ticks through the reds. Little reaction

noted to a deterioration in Westpac cons. conf. Elsewhere, the AOFM auctioned

A$500mn worth of the 2.75% 21 Apr 2024 ACGB. The RBC said that they exp. the RBA

to trim the cash rate to 0.25% & announce a min. A$40bn QE package in early '21.