T-Notes hover around unchanged.........>

BOND SUMMARY: T-Notes hover around unchanged levels as we move towards European

hours, with the curve twist steepening after the early risk aversion was unwound

as the Asia-Pac region reacted to U.S. President Trump's lack of firm action

against Hong Kong & China on Friday, which allowed regional participants to

breathe a sigh of relief as they returned to market today, countering the early

worry re: the continued weekend sabre rattling and increased tensions re: the

U.S. protests/looting.

- JGBs saw little in the way of meaningful news, with futures at worst levels at

typing, -7 on the day, as the curve twist steepens and 7s underperform. The

underlying dynamics of today's 1-3 & 25+ Year Rinban ops reinforced the move on

the curve (see earlier bullet for a little more detail).

- Aussie bond futures edged lower, with an eye on broader risk flows, as

domestic matters failed to provide much impetus. YM -0.5, XM -1.0 after a brief

blip lower for the latter during the broader risk positive flows.