Definite risk-on tone early.........>

US TSYS SUMMARY: Definite risk-on tone early Thursday, with Treasuries weaker

amid a sell-off in global govvies as trade tensions seen easing.

- It`s been all about US-China trade headlines: this morning's have been

risk-on: China MofCom said both have agreed to remove tariffs in phased manner.

Later, Xinhua reported China studying lifting curbs on US poultry imports.

- Stocks have rallied, S&P E-Mini Future up 13.5 points (0.44%) at 3089.5.

- Curve mixed: 2-Yr yield is up 3.2bps at 1.641%, 5-Yr is up 5.3bps at 1.684%,

10-Yr is up 4.7bps at 1.8756%, and 30-Yr is up 5.2bps at 2.3674%.

- Dec 10-Yr futures (TY) down 18.5/32 at 128-24 (L: 128-22.5 / H: 129-12).

Attention turns to the key support of 128-16, Sep 13 low.

- Prob of no Fed change through end-2020 up to 36%; was 17% on Oct 31 post-FOMC.

- Fairly data-light: Challenger layoffs (0730ET), jobless claims (0830ET),

consumer credit (1500ET) form the bulk of the docket.

- $19bln 30Yr auction at 1300ET.

- FedSpeak includes Dallas`s Kaplan (1305ET) and Atlanta`s Bostic (1910ET), the

latter making a fairly rare monetary policy-specific event appearance.