Waning optimism for progress in........>

BOND SUMMARY: Waning optimism for progress in U.S.-China trade negotiations &

escalating violence in Hong Kong provided support to core FI. On Saturday U.S.

Pres Trump again poured cold water on earlier reports re: alleged agreement on a

roll-back of some tariffs on China and added that Beijing wants the deal more

than he does. T-Notes last trade +0-00+ at 128-13, with Eurodollars unch. to

+0.5 tick through the reds. Cash Tsys are closed as the U.S. observes Veterans

Day, although equity markets will be open as usual.

- JGB futs off highs, last trade at 153.00, +9 ticks vs. settlement. Cash yield

curve runs steeper. The BoJ left the sizes of its 1-10 Year Rinban ops unch.

today. A small knee-jerk uptick seen on mixed numbers in Eco Watchers Survey,

with a miss in current conditions. Core machine orders & BoP c/a balance missed

exp. Little of note in the Summary of Opinions from the BoJ's Oct meeting.

- Aussie YM +1.5 & XM -0.5, while bills trade unch. to 2 ticks higher through

reds. Cash bond yields sit -1.7bp to +0.6bp, with some curve steepening evident.

The AOFM auctioned A$500mn worth of the 2.75% 21 Nov 2029 ACGB earlier today,

drawing a decent bid/cover ratio of 4.17x.