It had been a relatively limited session....>

US TSYS: It had been a relatively limited session for Tsys until BBG ran

headlines noting that U.S. President Trump is said to ask his cabinet to draft a

possible China trade deal after his phone call with President Xi, which

triggered broader risk on flows.

- This came several hours after Trump noted that Chinese President Xi "wants to

make a fair trade deal," but stressed that "we have to make the right deal."

- Heavy volume noted since the Trump headlines hit, with 70K T-Notes trading

hands over a 25 minute period and the contract breaching Thursday's low as the

belly of the curve leads yields higher (up 3.0-4.3bp on the day at writing).

- The Eurodollar strip also ran steeper on the day, last unchanged to 3.5 ticks

lower.

- U.S. NFPs & any China related headlines provide the event risk today.

- T-Notes last 118.11, U.S> 10-Year cash Tsy yields last 3.172%.