An uptick in JPY crosses, coupled with an...>

US TSYS: An uptick in JPY crosses, coupled with an uptick in U.S. equity index

futures allowed T-Notes to edge lower in early Asia-Pac hours, extending on the

pullback that came about in late NY hours after U.S. President Trump noted that

he expects a "quick" trade deal with China. Trump also noted that his

administration's blacklisting of Chinese telecom giant Huawei could become a

bargaining chip in trade negotiations with China. T-Notes last -0-09 at 124-29+,

off lows, U.S. 10-Year cash Tsy yields last 2.324%, with the curve bear

flattening in Asia-Pac hours. Downside interest was expressed via both the FVN9

116.00 & 115.75 puts overnight.

- Eurodollar futures trade 0.5-5.5 ticks lower through the reds. The overnight

highlight for Eurodollar futures was a 10.0K block trade in the EDZ9Z0Z1 fly,

which sources suggested was a buyer, with decent enough selling noted on screen

at lower levels later in the session. CME's "Fedwatch" tool indicates a ~78%

chance of at least one rate cut from the Fed by year end.

- Focus today moves to U.S. Durable Goods. Traders will be eying an early exit

owing to the Memorial Day holiday, with shortened trading hours in play.