Choppy midweek trade was exacerbated...>

US TSY/RECAP: Choppy midweek trade was exacerbated by thin summer participation,

swings in risk sentiment largely tied to China tariff spat-related headlines and

the EU's E2.8bn tariffs on the US, corresponding with USD/JPY moves.

- Tsys went out on lows as equities traded firmer after risk took a hit early on

after headlines stating that China will issue "strong countermeasures" in

ongoing tit-for-tat action vs. the latest round of US tariffs.

- Focus then turned to Fed Chair Powell who stuck to script, reiterating that

there is a "strong case for continued gradual rate hikes."

- Heavy volume was observed on a mid-morning swing in Tsys, over 100k TYU from

119-24.5 to -31.5 before futures gelled, tight stops triggered in the belly,

better sellers on net from prop & real-money a/c's, decent deal-tied hedging in

the mix with the second jumbo deal of the week: $16bn 9-part Walmart.

- Fed non-voter Kashkari is due to speak on Thursday.

- T-Notes last at 119., US 10-Year Tsy yields closed at 2.939%.