Strong risk-off flows have kicked in...>

BOND SUMMARY: Strong risk-off flows have kicked in during early Asia-Pacific

trade on the back of U.S. President Trump outlining tariffs to be implemented on

Mexican goods.

- T-Notes last dealing +0-12 at 126-02, with the curve bull steepening. 10-Year

yields have broken the recent low and last trade at 2.182%, a level not seen

since September 2017. Eurodollar futures trade 1.75 to 7.0 ticks higher through

the reds.

- Aussie bonds have also been dragged higher. YM +3.0, XM +6.0. YM/XM has

consolidated below 40 ticks, last at 38.5 ticks. Bills trading unchanged to 3

ticks higher through the reds. 10-Year yields trade back through the cash rate.

- JGB futures trade 11 ticks higher than settlement. Focus on todays 5-25+ Year

Rinban operations, followed by the BoJ's Rinban plan for June, amid growing

speculation that the bank may trim its purchases.

- German FI well bid; Schatz +1.5 ticks, Bobls +13.0 ticks, Bunds +34 ticks.

- Chinese PMI data is due shortly.