Bonds trade heavy in early Asia-Pac....>

BOND SUMMARY: Bonds trade heavy in early Asia-Pac hours. Stronger than exp.

Australian retail sales & trade data provided some pressure to Aussie Bonds &

Tsys, before extra weight was applied as FT sources reported that "top U.S. &

Chinese officials have resolved most of the issues standing in the way of a deal

to end their long-running trade dispute" but the sources did caution that the

two superpowers "are still haggling over how to implement and enforce the

agreement." The piece also noted that the fate of "existing US levies on Chinese

goods, which Beijing wants to see removed," are also providing a stumbling

block. The caveats limited the move, but Tsys and Aussie Bonds hold lower.

- T-Notes last at 123.19+, 5 ticks lower, with yields 1.6-2.5bp higher at

writing. Eurodollar futures trade 0.5-2.0 ticks lower through the reds.

- YM & XM are 3.0 ticks worse off. YM/XM deals at 48.5. Bills trade 2-3 ticks

lower through the reds.

- JGB futures trade are unch. The BoJ left the size of its 1-10 Year Rinban ops

unchanged, despite some chatter that the Bank may trim its purchases. Futures

knee-jerked lower on the FT headlines, before returning to unchanged levels.