Risk appetite was boosted by the.......>

BOND SUMMARY: Risk appetite was boosted by the PBoC setting the USD/CNY fix at a

lower level than expected (albeit above the key CNY7.0000 threshold), which

halted the early advance seen in core global FI. There was no notable reaction

to the latest round of monthly Chinese trade data, which showed a wider than

expected surplus, as both the import and export Y/Y readings topped consensus.

- This allowed T-Notes to breach Wednesday's low after yesterday's sharp

retracement from highs, with yields sitting marginally mixed across the curve at

writing. Eurodollar futures trade 2.5-5.5 ticks lower through the reds.

- Aussie bonds traded in a similar fashion with little to go off in terms of

domestic headline news flow, while across the Tasman, the RBNZ Governor & Deputy

Governor reiterated similar rhetoric to that which accompanied yesterday's

surprise 50bp rate cut. YM last -3.0 with XM -1.0, leaving the curve flatter on

the day.

- JGB futures sit around unchanged levels after printing a fresh record high in

the overnight session, with the curve a touch flatter, albeit at the margin.