Today's Asia-Pac session has seen a broader...>

BONDS: Today's Asia-Pac session has seen a broader risk-on theme in play,

following WSJ & BBG reports suggesting that the U.S. & China are close to

signing a trade deal, which could result in the lifting of all U.S. tariffs, if

China implements a set of structural reforms and purchases significant amounts

of U.S. goods. T-Notes last trade -2.0 ticks at 121.18+. Cash yields trade

0.4-0.8bps higher across the curve, with the 10-Year cash Tsy yield last at

2.759%. Eurodollar contracts are trading +0.25 to -1.0 tick through the reds.

- JGB futures have edged lower, finished the morning session at 152.55, 10 ticks

below settlement. Worth mentioning the BoJ decided to leave the sizes of its

Rinban ops unch. from the previous operations. JGB yields from 3-Years out are

trading 0.6-1.8bps higher, while the 2-Year yield is unchanged.

- Aussie bond yields have edged 1.2-3.6bps higher across the curve in sympathy

with Friday's move in Tsy yields, although the release of softer than exp. AU Q4

GDP partials has seen Aussie bond yields move away from lows. YM last trades

-1.5 tick, with XM -3.5 ticks at writing. YM/XM trades a touch higher at 49.0.

Bills trade unch. to -3.0 ticks through the reds.