Trade war headlines have been in.......>

BOND SUMMARY: Trade war headlines have been in focus, but provoked little in the

way of reaction from core FI. As the U.S. and China are set to ink their

phase-one trade pact, U.S. Tsy Sec Mnuchin said that it will contain no

side-agreements, while tariffs on China will be reviewed after phase-two talks

wrap up. Meanwhile, RTRS & WSJ highlighted simmering Sino-U.S. tensions over

Huawei/tech rivalry. T-Notes last trade flat at 129-04+, respect a 0-03+ tick

range. Yields sit slightly above neutral levels. Eurodollar futures unch. to

-1.0 tick through the reds.

- JGB futures have eased off but still trade +1 ticks at 151.77. Yields little

changed across the curve. BoJ Gov Kuroda offered nothing new in his latest

address. The focus turns to flash machine tool orders & 5-Year JGB supply.

- Looking at Aussie bond futures, YM +2.0 & XM +4.5 at typing. Yield curve runs

flatter, with yields trading 1.4-4.6bp lower. Bills last seen unch. to 2 ticks

better off through the reds. The AOFM auctioned A$400mn worth of ACGB 2.75% 21

Apr 2024 today, drawing a very strong cover ratio of 6.5375x. Elsewhere, PM

Morrison pledged to "spend as much as it takes" to help the bushfire victims.