A tight re-open for T-Notes, trading just...>

US TSYS: A tight re-open for T-Notes, trading just above Tuesday's lows, last

+0-01 at 129-25+. Brexit "optimism" provided weight to the complex on Tuesday,

as did Chinese official commentary pointing to the same understanding as the

U.S. re: the recent phase 1 trade agreement (even though it seems to be in

principle at present), although some more cautious source pieces did the rounds,

with BBG pointing to the need for further U.S. concessions re: tariffs to

facilitate broader buying of agricultural products from the Chinese. That being

said, it sill looks as if there will be meetings/phone calls over the coming

weeks to try and hammer out a firm deal before November's APEC summit in Chile.

- Fedspeak offered little new on Tuesday. Also worth remembering that the Fed

started its T-Bill purchasing programme on Tuesday, in an effort to ensure

"ample reserves" and combat recent stresses in the funding markets.

- Light deal-tied hedging in short end Tues, with a 10.0K FVZ block buyer seen.

- Retail sales headlines the docket Wednesday, with Fedspeak due from Brainard,

Evans & Kaplan. There will also be 5-Year TIPS supply. The latest democratic

Presidential candidate debate will also provide some noise in Asia.