The early part of the session was......>

BOND SUMMARY: The early part of the session was sanguine, with little in the way

of headline drivers apparent. That was before U.S. President Trump took to the

stage at a campaign event, stating that "China broke the deal" and "they will be

paying." This was followed up with "China looted our country for years, whatever

happens with trade talks happens, don't worry about it, it will all work out,"

which saw the bulk of the initial risk-off moves retraced.

- T-Notes last deal at 123.27+. The belly has outperformed in the cash space.

10-Year cash Tsy yields last 2.464%.

- In the Aussie bond space, YM +0.5 ticks, with XM +1.5 ticks. Flattening bias

continues, YM/XM last 46.5 ticks, with the cash equivalent at 42.9bp. Bills

trade unchanged to 2 ticks higher through the reds.

- JGB futures last deal 2 ticks higher, with modest flattening apparent in the

cash space.

- German FI relatively unchanged; Schatz unch, Bobls +2.0 ticks, Bunds +5 ticks.