Risk appetite was already lifted by....>

BOND SUMMARY: Risk appetite was already lifted by developments in U.S.-China

trade relations when it experienced a "Boris bounce," which took its toll on

core FI. UK exit polls showed that the Conservative Party is set to secure a

handsome parliamentary majority, which found confirmation as consecutive seats

were declared. Just before the polls hit the wires, BBG reported that U.S. Pres

Trump signed off on a phase-one trade pact with China, preventing the

implementation of Dec 15 tariff hike.

- T-Notes trade -0-07+ at 128-05; cash yields sit higher across the curve.

Eurodollars trade +0.75 to -2.5 ticks through the reds.

- JGB futures rebounded after a lower open, helped by a miss in Large M'fing

Index in Q4 Tankan Survey, but eased off post-lunch. BBG reported that Japan is

planning to finance extra stimulus budget by issuing ~Y4.4tn worth of bonds. JGB

futures trade at 152.26, -12 ticks vs. settlement; cash yields sit a tad higher.

- Aussie bond futs were heavy; YM -12.0 & XM -14.5 now. Yield curve has bear

steepened as yield sit 8.8-14.2bp higher. Bills are 5-13 ticks lower thru reds.

The IMF called upon Australian state gov'ts not to cut infrastructure spending.