The highlight of the session so far....>

BOND SUMMARY: The highlight of the session so far has been U.S. President

Trump's announcement that the next round of China tariffs hike will be delayed

by two weeks as a "gesture of good will." This follows a similar gesture on

Beijing's part, as yesterday they presented a list of U.S. goods to be exempted

from tariffs. The de-escalation in trade tensions has ignited risk-on flows,

applying weight to core FI space.

- T-Notes hover just above session lows, last -0-08+ at 129-20+. Cash Tsy yields

trade 1.6-2.7bp better off across the curve. Eurodollars last seen 0.5-3.5 ticks

lower through the reds.

- JGB futures last deal at 154.47, 8 ticks shy of settlement. Cash yields are

oscillating around neutral levels. Little to no reaction noted to a slight miss

in Japanese PPI and a beat in core machine orders. Focus turns to 5-25+ Year

Rinban ops, due shortly.

- Australian YM & XM both trade -1.5 tick. Aussie bond yields sit +1.3-2.2bp

across the curve. Bills trade -2 to +1 tick through the reds. Aussie consumer

inflation exp. printed at +3.1% vs. the prior +3.5%, no reaction so far.