An uptick in JPY crosses ahead of......>

BOND SUMMARY: An uptick in JPY crosses ahead of Tokyo fix allowed T-Notes to

edge lower in early Asia-Pacific trade, extending on the pullback that came

about in late NY hours after U.S. President Trump noted that he expects a

"quick" trade deal with China. Trump also noted that his administration's

blacklisting of Chinese telecom giant Huawei could become a bargaining chip in

trade negotiations with China. T-Notes last -0-10 at 124-28+, U.S. 10-Year cash

Tsy yields last 2.331%, with the curve bear flattening in Asia-Pac hours.

- Little to report for JGB futures, last +7 ticks with the curve a touch flatter

in cash trade.

- Aussie FI futures jolted into life after Westpac adjusted its call re: RBA

cuts. They now look for 3 cuts from the central bank in 2019 (prev. 2). This put

a bid into the space, with YM last +5.0 ticks and XM +6.0 ticks, reversing some

of the earlier flattening. YM/XM trades at 44.0 ticks. Bills trade unchanged to

5 ticks higher through the reds.

- German FI futures a touch lower. Schatz -0.5 tick, Bobls -2.0 ticks, Bunds -5

ticks.