A quiet Asia session with a decline in......>

US TSYS: A quiet Asia session with a decline in the Nikkei 225 (owing to

ex-divs) & caution ahead of the week-long Oct 1 holidays in China limiting price

action. T-Notes -0-01+ at 130-07+, yields little changed. Eurodlr futures

unch.-1.5 ticks lower thru reds.

- Yesterday's trade related news flow was mostly +ve, although BBG sources

warned that the U.S. is unlikely to renew a waiver for Huawei suppliers. Fox

sources later noted that "no decision has been made, it's "too far out". The

current waivers expire Nov 17th." Elsewhere, China's Wang Yi & WH econ advisor

Kudlow sounded a little more +ve on trade, while the NY/Asia crossover saw CNBC

suggest that trade talks are set to resume on Oct. 10-11 (widely touted

elsewhere). The latest 7-Year auction was strong, stopping through by 0.5bp, as

cover picked up & dealer participation eased. Fed's Barkin (non voter, hawkish)

spoke overnight & noted that his policy stance is "balanced" at present.

- The latest repo ops saw the enlarged $60bn term (14-day) ops fully allotted &

oversubd, while the o'night ($100bn potential size) ops were only ~50% subd.

- August PCE data headlines Friday's docket, with Fed's Quarles & Harker due up.