The escalation of tensions in Hong.....>

BOND SUMMARY: The escalation of tensions in Hong Kong provided some support for

core FI from the get go, although ranges were contained as traders continue to

look for further clarity on the Sino-U.S. trade front, following the latest

high-level phone call between negotiators on both sides of the fence. Elsewhere,

the PBoC decided to cut the rate applied to its 7-Day reverse repo facility by

5bp, which allowed core FI to ease back from best levels, and took the edge off

of the Asia-Pac session.

- T-Notes last +0-02+ at 129-07, with yields 0.4-0.9bp lower across the curve at

writing.

- A pretty non-descript session for the Aussie rates space, with a smooth enough

tender of A$500mn worth of ACGB 2.25% 21 May 2028 and some corporate issuance

also noted. YM & XM both +0.5, Bills unchanged to 1 tick lower through the reds.

- JGB futures last +15 vs. settlement, sticking to a tight range. 10-20 Year

paper outperforms on the curve, with yields 0.6-1.6bp lower across the curve.