Risk-off flows were triggered as the...>

BOND SUMMARY: Risk-off flows were triggered as the e-mini S&P 500 futures broke

below 2,800, with little in the way of headline catalysts noted. Early Asia saw

a commentary piece in China's People's Daily note that the U.S. shouldn't

underestimate China's ability to fight in the trade war, and signalled that the

country may use rare earth exports as a weapon in the trade war.

- T-Notes last +0-04 at 125-16+, U.S. 10-Year cash Tsy yield last at 2.250%,

with yields 1.3-1.8bp lower across the curve at writing.

- Aussie 10-Year yields have traded through the RBA's cash rate and printed a

fresh all-time low. YM last +2.0 ticks with XM +3.0 ticks. YM/XM trades at 41.5

ticks, with the cash equivalent at 39.3bp. Bills trade unchanged to 3 ticks

higher through the reds. Focus today is on the imminent issuance of A$3.0bn of

the new 1.50% 21 June 2031 ACGB.

- The JGB curve has continued to flatten, with futures last 13 ticks higher,

above the psychological 153.00 level.

- German FI is following the broader global core FI space; Schatz unch., Bobls

+5.0 ticks, Bunds +18 ticks.