The week is wrapping up with a.........>

BOND SUMMARY: The week is wrapping up with a risk-on tone, as quality govvys are

weakening alongside equity gains as a US-China trade truce is eyed.

- With news overnight of US Pres Trump said eyeing a possible China trade deal

after speaking w China Pres Xi, risk came back on the table, with heavy volumes

and T-notes breaking Thursday's low.

- Dec18 T-Note futures last off 8/32 at 118-11, with 2-yr yield up 3bps at

2.8749% and 10-Yr up 3.8bps at 3.168%.

- JGB space followed lower, 10-Yr yield up 0.6bps at -0.129%.

- Europe trading along the same lines: Gilt futures off 38 ticks at 121.86 (low

today of 121.83), Bunds down 40 ticks at 159.58 (low of 159.52).

- Italy the big gainer despite (because of?) weak final manuf PMI data; BTP

futures up 60 ticks at 122.71, near highs; 2-yr yield trading at lowest since

Oct 29, close here (0.909%) would be lowest since Sep 27.

- Short-Sterling and ED$ sharply lower with Greens/Blues off 3.5-4 ticks.

- All eyes on US employment data at 1230GMT; our Data team sees potential

downside risks to 190k consensus (see bullet earlier or ask us).