White House Advisor Navarro's own......>

BOND SUMMARY: White House Advisor Navarro's own take on Chinese whispers,

surrounding comments where he appeared to deem the Sino-U.S. trade deal as

"over", was the only game in town in Asia-Pac hours. The initial round of

comments drove risk-off market flows, before pushback from Messrs Navarro,

Kudlow and Trump re: what was meant by the comments/denial that such a statement

was true allowed risk to recover. This has generally biased core FI markets

lower in the second half of the Asia-Pac session, with news flow light

elsewhere.

- T-Notes unchanged at 138-22+ at typing, with volume nearing an impressive

200K, while yields sit unchanged to 0.7bp richer across the curve.

- The Aussie curve has been a little more biased towards steepening during

Sydney hours, perhaps in reaction to Monday's risk-on price action in NY hours,

with some A$ corporate issuance also in the mix. YM -1.0, XM -4.0.

- JGB futures hover around unchanged levels, with outperformance in the shorter

end/belly allowing some twist steepening of the cash curve.