Risk-off flows were triggered in.......>

BOND SUMMARY: Risk-off flows were triggered in early Asia-Pac hours as the

e-mini S&P 500 futures broke below 2,800, with little in the way of headline

catalysts noted. There was a commentary piece in China's People's Daily noting

that the U.S. shouldn't underestimate China's ability to fight in the trade war

& signalled that the country may use rare earth exports as a weapon, but this

really wasn't new, and there was an hour or so between that headline & the move,

suggesting that the break in S&P futures was the driver. T-Notes last +0-06 at

125-18+, just off highs, U.S. 10-Year cash Tsy yield last at 2.243%.

- Aussie 10-Year yields trade < the RBA cash rate & printed an all-time low. YM

+2.0 ticks, XM +4.0 ticks. YM/XM at 41.0 ticks, with the cash equiv at 38.6bp.

Bills trade unch.-3 ticks higher thru the reds. A$3.0bn of the new 1.50% 21 Jun

2031 ACGB was well received, EFP of ~+9.5 & a solid cover ratio of 3.5883x.

- 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 +0.5 tick,

Bobls +7.0 ticks, Bunds +21 ticks.