A quiet re-open for futures, with T-Notes...>

US TSYS: A quiet re-open for futures, with T-Notes last +0-01+ at 127-18. This

comes after a raft of soft m'fing PMI prints from Europe & the U.S. provided the

highlight of Wednesday's session, driving demand for Tsys from early London

hours. Bull flattening was the order of the day on the curve.

- Muller's testimony on the Hill revealed little new, as most expected.

- Elsewhere, U.S. Tsy Sec Mnuchin confirmed next week's jaunt to Shanghai, and

that he will be accompanied by Lighthizer. Some media reports noted that Xi

Jinping will also be in Shanghai next week, with their sources pointing to the

possibility of a meeting between Xi & U.S. off'ls. If such a meeting were to

take place it could be more of a public gesture as opposed to a meeting which

could provide any real substance N.B. BBG sources reported that China has

approved tariff-free U.S. soybean purchases as a gesture of goodwill.

- T-Notes came under some brief pressure on the back of a tailing 5-Year

auction, which saw the cover ratio soften further away from the recent avgs as

dealer participation picked up, although the move was limited and short lived.

- Durable goods data, 7-Year supply & the ECB decision headline on Thursday.