An uptick in JPY crosses, coupled......>

BOND SUMMARY: An uptick in JPY crosses, coupled with an uptick in U.S. equity

index futures allowed T-Notes to edge lower in early Asia-Pac hours, 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 -0-09+ at 124-29,

off lows, U.S. 10-Year cash Tsy yields last 2.326%, with the curve bear

flattening in Asia-Pac hours.

- Little to report for JGB futures, last +9 ticks with the curve flatter.

- 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, which has since faded, with YM last +3.5 ticks and XM +4.0

ticks, reversing the earlier flattening. YM/XM trades at 44.5 ticks. Bills trade

1-4 ticks higher through the reds.

- German FI futures a touch lower. Schatz -0.5 tick, Bobls -3.0 ticks, Bunds -3

ticks.