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The ratcheting up of tensions in the...>

BOND SUMMARY: The ratcheting up of tensions in the Sino-U.S. trade war, which
ultimately saw the USD/Yuan crosses trade > 7.00, put a bid into core global FI,
with further support seen on BBG headlines suggesting that China is said to have
asked state buyers to halt imports of U.S. ag products. Worth flagging that
T-Notes & JGBs have faded from best levels since.
- T-Notes took out Friday's highs & last deal +0-21 at 129-16+, with yields
6.6-7.6bp lower across the curve. 10-Year cash Tsys yield 1.773% at writing. The
highlights flow-wise saw 20.0K of the TYV9 129/128 put spread blocked (buyer),
with 20.0K of the TYU9 131 calls blocked at the time (seller). there was a 15.0K
buyer of the TYU9 131.50 calls elsewhere. Eurodollar futures trade 4.5-10.5
ticks higher through the reds, with what looked to be 40.0K of the 0EZ9
98.375/98.125 bought on block vs. 40.0K of the 0EV9 99.00 calls.
- JGB futures registered fresh all time highs & last deal +30 ticks. 10-Year JGB
yields are testing the lower end of the range permitted by the BoJ, -0.20%.
- In AU bond futures, YM & XM last +6.5. YM/XM little changed at 36.5 ticks.
Bills 2-8 ticks higher. Aussie cash bonds were closed, owing to a NSW holiday.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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