A quiet re-open for T-Notes after the.......>

US TSYS: A quiet re-open for T-Notes after the contract finished off early NY

highs on Wednesday, but was still well bid on the day. The cash space saw the

belly outperform, with yields closing 2.9-4.1bp softer across the curve.

- European hours saw the space underpinned by moves in EGBs, as worry

surrounding the Italian fiscal situation intensified.

- Middle East tension & ongoing China trade angst continued to lend support, and

received further help from soft U.S. data in the form of retail sales and

industrial production, although a 6-month postponement of a decision on auto

tariffs and the potential for the revoking of steel tariffs with USMCA/NAFTA

partners helped Tsys off of highs.

- Fed's Barkin noted that strong U.S. growth & subdued inflation vindicates the

central bank's patient stance.

- The latest TIC flows data saw China trim Tsy holdings, marginally.

- T-Notes last 124.22, U.S. 10-Year cash Tsy yields closed at 2.373%.