Continued deterioration in risk.....>

US TSYS SUMMARY: Continued deterioration in risk sentiment overnight has pushed

Tsys to fresh highs Friday, with a bit of U.S. data to come later.

- Sep 10-Yr futures (TY) up 8.5/32 at 127-20 (earlier hit contract high of

127-21.) The 2-Yr yield is down 3.6bps at 1.7998%, 5-Yr is down 4bps at 1.7979%,

10-Yr is down 3.5bps at 2.0597%, and 30-Yr is down 2.5bps at 2.5748%.

- Tensions in the Gulf region have helped drag global equities and safe haven

yields lower; S&P e-minis futures down 0.3%.

- Also contributing to risk-off tone overnight was from ex-PBoC Gov Zhou, who

warned against competitive devaluations amid trade war.

- MNI sources said a substantive US-China agreement reached at the G20.

- Red Eurodollars leading gains in the ED strip, up 3.5-4 ticks.

- Data later sees some of the final pieces of the macro puzzle come together

pre-FOMC. Retail sales, industrial production, and preliminary UMich survey all

feature on the slate.

- Pres Trump appearing on Fox at 0800ET.