T-Notes holding a 0-03+ range thus.....>

BOND SUMMARY: T-Notes holding a 0-03+ range thus far, last -0-02 at 139-04, as

yields sit unchanged to 0.7bp richer across the curve. There really was little

to note for the space, with comments from Chinese diplomat Wang Yi apparently

signalling the potential for the resumption of Sino-U.S. talks, across all

levels, although the Foreign Minister did push for reciprocal sincerity from the

U.S.

- JGB futures registered fresh session highs in afternoon trade, on the back of

another solid round of upsized supply from the MoF, coming via the 5-Year

variety. Contract last +11, with the curve flattening. Still, 5s underperform on

the curve, with swaps wider vs. JGBS.

- It was a very, very flat session for the Aussie bond space, with no reaction

to the latest round of local data (housing finance data was never set to move

the needle given the current backdrop) and escalation in Sino-Aussie tensions

surrounding Hong Kong. Curve still steeper vs. settlement, YM -1.0, XM -3.5.