Another tight re-open for T-Notes, last.....>

US TSYS: Another tight re-open for T-Notes, last -0-03 at 129-16 after yields

ticked lower on Thursday, allowing the contract to lodge small gains. The

ongoing tension in the Middle East continues to draw interest, while there were

some developments on the Sino-U.S. trade front. WH advisor Pilsbury told the

SCMP that Trump has been "remarkably restrained in the pressure he has brought

to bear on China in the trade field. Stressing that "the tariffs can be raised

higher. These are low level tariffs that could go to 50% or 100%." "There are

other options involving the financial markets, Wall Street," he said. Also, CNBC

highlighted that after the jnr ministerial level talks wrap up this week a small

group of Chinese off'ls are planning "a trip to farm country to meet face to

face with the producers whose finances have been deteriorating."

- On the data front, existing home home sales beat & the breakdown of the Philly

Fed m'fing survey was more constructive than the softening headline.

- Funding pressures moderated, NY Fed will run a 4th round of repo ops Friday.

- Fedspeak is back with a bang Friday, with Clarida & Williams set to draw the

most attention, while dissenting voter Rosengren & non-voter Kaplan also speak.