Risk aversion has dominated early......>

BOND SUMMARY: Risk aversion has dominated early trade on the back of previously

documented factors, supporting core FI. U.S.-China tensions escalated over the

weekend, while North and South Korea exchanged fire across their fortified

border. Wider coronavirus worry remains, with Berkshire Hathaway getting rid of

its U.S. airline holdings. Weekend news flow remains under scrutiny, with little

of note hitting the wires since. China and Japan are off for public holidays.

- T-Notes continue to operate at elevated levels, last +0-09 at 139-05. The

contract has moved off highs as U.S. equity index futures have ticked away from

worst levels. Eurodollars last sit 0.5-1.5 tick higher through the reds. Cash

Tsys don't trade due to the Japanese holidays.

- In Australia, YM +0.5 & XM +3.0. Cash yields sit lower, with belly

outperforming. Bills are unch. through the reds. Australian building approvals

were less bad than expected, falling 4.0% M/M vs. exp. of -15.0%. ANZ job ads

shrank 53.1% M/M in April, while Melbourne Institute Inflation printed at +1.2%

Y/Y vs. the prior +1.5%. The AOFM auctioned ACGB 3.25% 21 Apr 2025, while the

RBA offered to buy A$500mn of ACGBs with maturities of Apr '27 to Nov '28.