A ltd T-Note re-open, +0-03 at 129-00+......>

US TSYS: A ltd T-Note re-open, +0-03 at 129-00+. The impact of the +ve, albeit

heavily caveated FT report re: Sino-U.S. trade matters released in yesterday's

Asia session spilled through into NY hours Tuesday, with T-Notes coming under

fresh pressure on the back of a strong headline ISM non-m'fing print. The 7-10

Year sector underperformed in cash trade, with yields closing 4.2-8.4bp higher

across the curve. There was some confusion surrounding a tweet merry go round

from the Editor in Chief of the Global Times. But he seemingly settled with the

suggestion that "To reach a deal, China and the US must simultaneously remove

the existing additional tariffs at the same ratio, which means that tariffs to

be removed should be in proportion to how much agreement has been reached."

- The latest 3-Year auction was well received, stopping virtually on the

screens, with the cover ratio edging higher, indirect participation increasing

and dealer takedown moderating.

- Note, given consistent selling since NFPs, Fed funds futures pricing of a

fourth rate cut by year end has fallen from mid-30% last Fri to 5% currently.

- Fed's Williams, Evans & Harker all due Wednesday, 10-Year supply also slated.