A cloudier trade outlook lent light.........>

US TSYS: A cloudier trade outlook lent light support overnight. Early trade saw

the NYT report that "the Trump admin is considering limits to a Chinese video

surveillance giant's ability to buy U.S. tech, people familiar with the matter

said." This came after the Chinese ambassador to the U.S. noted that the door is

still open re: further trade talks. The move higher faded, but within the last

half hour or so a BBG sources piece suggested that the U.S. is weighing the

blacklisting of up to 5 Chinese surveillance firms, providing a fresh, modest

bid. Flow was dominated by TYM9 124.75 call buying via a 10.5K block & more on

screen. There was small interest in TYN9 124.50/125.00 call spread.

- In a BBG interview 2019 Fed voter Bullard suggested that the neutral rate is

~2%, so "if anything U.S rates are a bit restrictive." Bullard also noted that

U.S. rates are in a good place. He alluded to the possibility of a rate cut even

with the econ holding strong to assert that the Fed is serious re: inflation its

target, but suggested that such a move would be premature at present.

- Fed mins provide the highlight today, Fed's Williams & Bostic will also speak.

- T-Notes last 124-06, U.S. 10-Year cash Tsy yields last at 2.423%.