Improving risk appetite has pushed.....>

BOND SUMMARY: Improving risk appetite has pushed core FI lower amid expectations

for some further monetary loosening from the PBoC & a pushback from U.S. Vice

Pres Pence's spox against his reported self-isolation. Regional equity

benchmarks have firmed up, while U.S. equity index futures are back in the

green, despite a slightly lower open, in the wake of Friday's solid NY session.

- T-Notes sit -0-07 at 138-23+ as we type, with yield curve undergoing some bear

steepening in cash trade. Eurodollars last seen unch. to -2.5 ticks thru reds.

- JGB futures trade at 152.24, 13 ticks shy of settlement. Yields are mixed in

cash trade, with 7s underperforming. The BoJ upped the size of its 3-5 Year JGB

purchases to Y350bn from Y300bn, while leaving 1-3 & 25+ Year purchases unch.

- In Australia, YM -0.5 & XM -7.5. Curve runs steeper, with yields sitting

0.1-8.0bp richer. Bills are unch. to -2 tick through the reds. The space has

been unfazed by local headlines re: Sino-Australian tensions & the RBA's

decision not to buy ACGBs today in its first back-to-back purchase skip since

the launch of the programme.