The early part of the Asia-Pac.........>

BOND SUMMARY: The early part of the Asia-Pac session has been fairly quiet,

hence the absence of major price gyrations. U.S. President Trump declared that

he wants a full trade deal with China, but he would consider an interim accord;

he also noted the potential for another meeting with North Korea's Kim. Speaking

at the House Republican Conference, he said a tax cut for middle-income

Americans will be announced next year. T-Notes last seen +0-04+ at 129-18+, cash

Tsy yields sit near neutral levels. Eurodollar contracts sit up to 2.0 ticks

higher through the reds. Worth noting the repeated mentions of possible 50-Year

Tsys issuance from Tsy Sec Mnuchin over the last ~12 hours.

- JGB futures trade 27 ticks worse off, last at 154.37. Japanese yield curve has

shifted slightly higher and runs steeper a tad. Final industrial output and

capacity utilisation data, as well as an enhanced liquidity auction for 5-15.5

Year JGBs are the local highlights today.

- Australian YMZ9 trades -1.5, with XMZ9 unch. (Z9 contracts now lead in volume

& OI). The yield curve has bear flattened, with yields seen 0.2-1.2bp higher.

Bills are unch. to -2 tick through the reds.