Risk negative headline flow............>

BOND SUMMARY: Risk negative headline flow surrounding Sino-U.S. trade & U.S.

legislative matters re: Hong Kong weighed on risk appetite from the off in Asia,

although sentiment managed a recovery on news that Chinese Vice Premier Liu He

was confused but confident re: signing a phase 1 trade deal with the U.S. via

BBG sources N.B. these comments came before source reports suggested that U.S.

President Trump would sign the HK bill that passed through the U.S. House

yesterday, as they were made on Wednesday.

- Tsys were at the mercy of headline flow, and last trade +0-01 at 129-26+, back

from best levels, after the Liu He headlines negated the early buying impetus

that was aided by a couple of pockets of buying of TYZ9 during Asia hours.

Eurodollar futures sit unch. to 0.5 tick higher through the reds.

- Aussie Bonds were also at the mercy of broader headline flow, with little of

note on the domestic agenda, outside of Moody's downgrading its outlook for

state governments from "stable" to "negative". YM -0.5 and XM +0.5. YM/XM a

touch flatter at 35.0. Bills unchanged to 2 ticks lower through the reds.

- JGB futures extended on overnight highs then reversed, last unch.