Trade war headlines dominated the......>

BOND SUMMARY: Trade war headlines dominated the airwaves in Asia, with little

notable news flow elsewhere. Firstly, Pres. Trump provided a gesture of goodwill

to China in the form of a 2-week delay to the next round of tariffs to be levied

on Chinese goods. This was followed up by a BBG report suggesting that "China

may allow companies to resume purchases of U.S. agricultural products in a show

of goodwill ahead of upcoming trade talks between the two countries."

- T-Notes last -0-08 at 129-21, just off session lows, while the belly of the

curve underperformed in cash trade. Eurodollar futures sit 0.75 to 4.0 ticks

lower through the reds.

- Aussie bond futures were contained, with roll activity and the trade war

headlines dominating. YM -2.0, XM -2.5. Bills are 2-3 ticks lower through the

reds excl. IRU9.

- JGB futures are 2 ticks worse off, with the cash curve steepening as the

super-long end underperforms in afternoon trade after the offer to cover ratio

in the latest round of 25+ Year BoJ Rinban operations moved higher, although the

average spread narrowed.