U.S.-China trade developments..........>

BOND SUMMARY: U.S.-China trade developments continue to determine the general

risk backdrop. Participants turned cautious after WSJ sources mentioned a

deadlock over farm purchases, but comments from White House adviser Navarro, who

downplayed the report as "rumours," have brought reprieve. T-Notes round tripped

from 128-27 and last trade -0-06 at 128-22+. Cash Tsy yields are marginally

higher across the curve. Eurodollars last seen up to 2.5 tick lower through the

reds. The latest round of Fedspeak has failed to move the space.

- JGB futures have eased off highs lately, last trade at 152.94, +16 ticks vs.

settlement. Cash JGB yields sit a touch lower across the curve. The local flash

GDP data revealed a slightly larger than exp. economic slowdown. Japan will

offer Y1.9tn 5-Year JGBs at an auction later today.

- Aussie bond futs received a boost from a gloomy Aussie jobs report, which saw

the unemployment rate creep higher amid softer employment & participation. This

was accompanied by -ve revisions & warning signals re: spare capacity. YM +6.5 &

XM +7.0, with cash yields 6.1-6.8bp lower across the curve. Bills last seen 4-8

ticks higher through the reds. Focus is on Chinese activity data, due shortly.