Warmer rhetoric re: China from U.S.....>

BOND SUMMARY: Warmer rhetoric re: China from U.S. President Trump applied fresh

weight to the developed FI space, before a stronger yuan fix from the PBOC

accelerated risk-on flows (although the major regional equity markets remain

well shy of neutral at writing). Trump noted that we will know in 3-4 weeks if

China talks will be successful, adding that he feels they will be.

- T-Notes last trade -0.03 at 124.10+ with the U.S. 10-Year cash Tsy yield at

2.414%. Cash yields are trading 0.4-1.5bp higher across the curve. Eurodollar

futures trade 0.5 ticks lower to 1.0 tick higher through the reds.

- JGB futures slid steadily and last trade at 152.75, just shy of unchanged

levels. Cash yields are trading 0.5bp lower to 0.3bp higher across the curve,

with the super-long end outperforming, aided by a solid round of 30-Year supply.

- Aussie bond yields last seen 1.4-2.4bp higher across the curve. YM trades 2.5

ticks higher at 98.775, with XM sitting at 98.290, also 2.5 ticks higher. Little

reaction observed to the latest round of ACGB I/L supply. Bills are trading 1-3

ticks higher through the reds.

- Bunds last +0.16 at 166.36, Bobls -0.07 at 133.29, Schatz -0.015 at 112.000.