A limited re-open for T-Notes, last.........>

US TSYS: A limited re-open for T-Notes, last +0-03+ at 131-23+ (TYZ9). The

contract eased on Thursday, but finished off lows, while the curve saw some

modest twist flattening, with 30-Year yields going out 0.7bp lower on the day.

- The 1st kick lower came on the back of the Chinese Ministry of Commerce's

weekly presser, which many took as a signal that China will not retaliate to the

latest round of tariffs outlined by the U.S., but we all know that President

Trump's Twitter feed leaves us 280 characters away from pandemonium at any time.

The latest 7-Year auction allowed T-Notes to extend to fresh lows late in the

day, generating a 2.1bp tail & softer cover ratio. Internals revealed that

dealers took down a larger & above recent average proportion of the supply.

Elsewhere, the latest hawkish rhetoric from ECB's Knot generated some interest,

but doesn't really move the needle for broader ECB policy exp given his

well-established hawkish leanings. There was limited reaction to local data.

- PCE data & the Chicago PMI headline the local docket on Friday. It is also

worth reminding that the latest round of tariffs in the Sino-U.S. trade war are

set to go into play on Sunday. Monday is the Labour Day holiday in the U.S.