Participants were cautious overnight on.....>

US TSYS: Participants were cautious overnight on worries re: global growth,

while exp. of further global MonPol easing are growing. Early focus fell on U.S.

Pres Trump's announcement that he will nominate Judy Shelton & Christopher

Waller for seats on the Fed Board, while Chinese Caixin PMI data underwhelmed. A

RTRS piece noted U.S. gov't staff have been told to treat Huawei as blacklisted.

T-Notes breached June's high, but are off best levels, with 10-Y yields setting

a fresh cycle low. T-Notes last +0-06+ at 128-11.

- Decent option flow seen. There was a block buyer of 40.0K FVQ9 117.75 puts vs.

40.0K FVU9 118.00-117.50 put spread. USQ9 157.50 calls saw 3.0K blocked at 0-41.

Screen trade saw decent downside interest in FV, with the FVQ9 117.25, FVQ9

116.75 & FVU9 117.00 puts all active. TY options saw a notable amount of puts

written, most notably TYQ9 126.50 puts, perhaps bears throwing in the towel?

- Eurodollars +2.5-3.5 ticks thru the reds.

- Focus now moves to ADP ahead of NFPs on Friday, which comes in the midst of

the Independence Day holiday period and broken trading schedule that goes into

play around it. Elsewhere non-m'fing ISM and factory orders will draw interest.