U.S.-China situation has remained......>

BOND SUMMARY: U.S.-China situation has remained the focal point after U.S.

Treasury removed China's "currency manipulator" status, while both sides are

preparing to ink their phase-one trade pact. Resulting enthusiasm supported risk

appetite on Monday and has filtered through into the Asia-Pac session.

- T-Notes last trade -0-03+ at 128-26. Light pressure noted on headlines re:

China's commitments included in phase-one trade deal. Yields 1.0-1.3bp higher

across the curve. Eurodollar futures sit 1.0-1.5 tick lower through the reds.

- JGB futures reopened after a Japanese national holiday, pressured by the

global dynamics seen on Monday. The contract last trades at 151.86, 14 ticks shy

of settlement. Yields are slightly higher across the curve. The BoJ conducted

its 10-25+ Year Rinban ops, leaving all purchase sizes unchanged. Local BoP data

was ignored, the focus turns to the local Eco Watchers Survey.

- Australian YM sits -1.5 & XM -4.0 at typing, with little new locally to move

the needle. Cash yields last seen 1.2-3.4bp higher across the steeper curve.

Bills trade unch. to 3 ticks lower through the reds.