Yesterday's risk-on mood, inspired.....>

BOND SUMMARY: Yesterday's risk-on mood, inspired by the de-escalation in

U.S.-China trade war, has moderated somewhat. Core FI have ticked higher lately.

There seems to be little new in the way of headlines that could underpin the

move, but familiar risk themes remain in play, headlined by intensifying unrest

in Hong Kong. This has occurred in sync with a pullback in major regional equity

indices, although they remain in the green. T-Notes last trade +0-01 at 129-27+,

with cash Tsy yields sitting 1.3-2.6bp lower across the curve. Eurodollar

contracts last seen -0.5 tick to +3.0 ticks through the reds.

- JGB futures sit 12 ticks shy of settlement, last at 154.79. JGB yield curve

has bear steepened. Muted reaction was noted to impressive beats in core machine

orders, both on a M/M and Y/Y basis. Chosun Ilbo reported that Japanese & S.

Korean Foreign Mins will meet next week on neutral territory.

- Aussie bond futures have climbed, YM last -3.5 ticks, XM -3.0 ticks. Aussie

yield curve runs flatter, yields sit 1.0-3.2bp higher. Bills are 2-4 ticks lower

thru reds. Focus turns to A$800 million of ACGB 2.50% 21 May 2030 supply at the

top of the hour, followed by Aussie wage price index & China's activity data.