Futures finished the morning session at........>

JGBS: Futures finished the morning session at worst levels, with bears targeting

a break of the overnight low, aided by broader risk on flows on the back of

growing optimism surrounding the U.S.-China vice-ministerial trade talks. The

Nikkei 225 finished the morning session ~+1.3%.

- Yields are largely unchanged, all trading within 0.7bp of yesterday's close.

10-Year JGB yields last deal at 0.026%.

- The BoJ left the size of its 5-10 Year & JGBi Rinban ops unchanged today.

Offer to cover ratios were as follows: 5-10 Year 3.28 (prev. 2.37), JGBis 5.48

(prev. 6.73).

- The BoJ will take some solace in real wage growth moving into positive

territory, although average wage growth was boosted by bonuses and other special

pay.