Brexit & Italian budget matters........>

US TSY/RECAP: Brexit & Italian budget matters drove risk sentiment through EU

hours on Wednesday, with equities moving lower in the latter half of the U.S.

session, as oil cratered, lending support to Tsys, with T-Notes going out near

session highs.

- Positive comments from Trump advisor Kudlow re: China trade, had allowed Tsys

to pare some of their gains in the late U.S. morning. 

- The belly of the curve outperformed in cash trade.

- Notable Large 5s/Ultra-bond steepener block in early trade: +39,682 FVZ

112-11.5, buy through -10 post time offer, -7,235 150-04, post time bid.

- Elsewhere it was a slow data day, little substance from multiple Fed speakers.

Quiet US Tsy bill auctions.

- Deal tied flow was also noted, as IG issuance picks back up.

- Focus Wednesday turns to U.S. CPI, as well as speeches from Fed Chair Powell &

Gov. Quarles.

- T-Notes last 118.17+, U.S. 10-Year cash Tsy yields closed at 3.140%.