The U.S.-China trade situation.........>

BOND SUMMARY: The U.S.-China trade situation remains in focus, with participants

on the lookout for any signs that the reportedly intensified dialogue is bearing

fruits. Elsewhere, the rapid escalation of violence in Hong Kong continues to

worry investors. That said, risk appetite has received some modest support after

the PBoC lowered the rate applied to their 7-day reverse repo operations. 

- T-Notes last trade +0-02 at 129-06+. Cash Tsy yields see some very marginal

curve steepening. Eurodollars little changed, up to +0.5 tick through the reds.

- After easing off, JGB futures last trade at 153.14, +9 ticks vs. settlement.

Cash JGB yields are little changed across the curve. There is an enhanced

liquidity auction for off the run 1-5 Year JGBs coming up later today.

- Australian YM trades unchanged, XM -0.5 tick. Cash yield curve runs steeper at

the margin. The AOFM sold A$500mn worth of the 2.25% 21 May 2028 ACGB earlier

today, the first time the line was auctioned since Feb.