'Deal' risk is firmly on as the.....>

US TSYS SUMMARY: 'Deal' risk is firmly on as the UK and EU have reached a Brexit

deal, and China sounded soothing notes on talks with the U.S.

- China Comm. Min spokesman said China hoped to reach a phased trade agreement

with U.S. as early as possible; talks ongoing; S&P futs hit day's high.

- But the big news was out of Brussels, with a Brexit deal reached. While some

concerns about next steps, risk appetite has risen sharply.

- The 2-Yr yield is up 2.9bps at 1.6122%, 5-Yr is up 3.5bps at 1.5955%, 10-Yr is

up 3.9bps at 1.778%, and 30-Yr is up 2.9bps at 2.2535%.

- Dec 10-Yr futures (TY) down 9/32 at 129-22.5 (L: 129-16.5 / H: 130-06). Flow

of note earlier: 55.0K of the TYZ9 128.00 puts blocked at 0-12, looks bot.

- Decent slate of data up later including housing starts/building permits

alongside Philly Fed at 0830ET, Ind. Prod. at 0915ET.

- Nearing the end of the pre-Blackout period, we get Chicago's Evans alongside

Fed Gov Bowman at 'Fed Listens' in Chicago (1400ET), but main event likely to be

NY Fed's Williams speaking Fed's Williams speaking w Q&A in NYC (1620ET).

- $17bln 5-Year TIPS supply also due.