Risk appetite has improved in early....>

BOND SUMMARY: Risk appetite has improved in early Asia-Pac hours. News-wise,

mixed signals noted re: U.S./Huawei. Press reports from over the weekend

suggested that U.S. Commerce Dep't may extend its permission for Huawei to buy

supplies from U.S. producers, but U.S. Pres Trump called the tech giant a

"national security threat" adding "we may not do business with [Huawei] at all."

- T-Notes slightly on the back foot, last trade -0-08+ at 130-21. Cash Tsy yield

curve has bear steepened. Eurodollars are unch. to -1.5 tick thru reds. BBG

noted on Friday that U.S. Tsy floated the idea of issuing 50- or 100-year bonds.

- JGB futures at 154.75, -10 ticks vs. settlement. Cash yield curve has bear

steepened somewhat. Muted reaction noted to local trade data, with a wider than

exp. trade deficit underpinned by declines in imports and exports, albeit

smaller than forecast. Focus turns to the latest round of BoJ 1-5 Yr Rinban ops.

- Aussie bond futures hold lower as well; YM -2.0 ticks vs. settlement, XM -4.0

ticks. Aussie bond yields trade 2.0-4.8bp higher, with some bear steepening

evident. Bills trade 2-3 ticks lower through the reds. The results of an auction

of A$300mn of ACGB 2.75% 21 May 2041 will be published at the top of the hour.