T-Notes unwound early, modest..........>

BOND SUMMARY: T-Notes unwound early, modest losses, +0-00+ at 128-08+ last, with

the curve twist flattening at the margin, activity remains muted. Participants

perhaps chose to focus on the weekend comments out of North Korea, continuing

the run of recent frosty relations with the U.S., as well as Chinese President

Xi being "gravely concerned over the negative words and actions of the U.S. on

issues related to Taiwan, Hong Kong, Xinjiang, and Tibet," which interfered with

China's internal affairs and damaged its interests. As a result, they looked

through the latest round of import tariff reduction headlines out of China.

Eurodollars unch. to -0.5 tick thru reds. 1-week FX forwards starting to bake in

higher USD funding costs at year end, however, x-ccy basis was subdued.

- JGB futures outperformed global core FI counterparts in early Tokyo trade,

more than unwinding the losses seen in the final overnight session of last week,

before the strength faded, -5 ticks at writing. Yields unch. to marginally

higher across the curve. Very little apparent in the way of idiosyncrasies.

- Aussie bond futures traded back from their early Sydney troughs. YM unch., XM

-1.0. Bills print 2-4 ticks lower through the reds.