Core FI futures have moved away from........>

US TSYS: Core FI futures have moved away from session lows that were inspired by

weekend newsflow. The Trump-Xi meeting concluded with a U.S.-China trade truce,

before Trump had an impromptu meeting with North Korean leader Kim. Soft Chinese

data and the realisation that the trade truce holds little in the way of

substance re: structural issues (see G20: ###POV: PROGRESS, BUT NOTHING TO WRITE

HOME ABOUT at 22:51 06/30 BST) allowed yields to tick back from highs. T-Notes

still trade -0-10 at 127-21. Cash Tsys have witnessed some modest bear

flattening. Flow wise, downside strategies were in vogue, with the TYQ9

126.50/126.00 put spread in play. There was also a block seller of FVU9 noted.

- Eurodollar futures last seen 4.0-6.0 ticks lower through the reds. Flow wise

the EDU9 97.500/97.375 put spread provided the highlight, with over 30K trading

on the session.

- Fed fund futures price a ~20% chance of a 50bp cut from the Fed later this

month (after settling at ~28% on Friday).

- U.S. focus moves to the m'fing ISM print and a speech from Fed Vice Chair

Clarida, in addition to any fallout from the weekend's events.