Tsys have been under some modest.......>

BOND SUMMARY: Tsys have been under some modest pressure during Asia-Pac trade

owing to a bipartisan leadership deal re: the debt ceiling, coupled with hope

surrounding a fresh round of U.S.-China trade talks & U.S. President Trump

reportedly agreeing to a request for timely licencing decisions re: sales to

Huawei. T-Notes last 0-03+ lower on the day at 127-15+, with yields a touch

higher. Eurodollar futures trade 1.5-2.0 ticks lower through the reds.

- The super long end of the JGB curve has come under some pressure on the back

of a disappointing 40-Year auction which saw the high yield top dealer exp.,

while the cover ratio softened vs. the prior auction, resulting in some twist

steepening of the curve. Futures knee jerked lower on the auction result, before

recovering, to last trade 4 ticks above settlement levels.

- The Aussie Bond space was pressured by semi pricing from NTTC, as it issued

A$600mn worth of its new 2.00% 2029 line at EFP +79bp. YM deals unchanged vs.

settlement, with XM +1.0 on the day. Curve has moved away from flattest levels

as a result, YM/XM deals at 42.0 ticks, with the cash equivalent at 38.1bp.

Bills trade unchanged to 2 ticks lower through the reds.