Positive comments from Chinese Pres Xi......>

US TSYS: Positive comments from Chinese Pres Xi re: opening up of

imports/lowering tariffs provided some modest risk on flows, which briefly

allowed T-Notes to edge back from session highs, before buyers stepped back in.

- T-Notes have ticked higher in early dealing this week, although activity has

been lacklustre, as markets await the Mid-term elections and latest FOMC MonPol

decision later this week.

- Yields are 0.8 to 1.0bp lower across the Tsy curve at writing, with a downtick

in Asia-Pacific equities & soft Chinese Caixin PMI data lending support.

- Limited Eurodollar activity. Highlight being 6.0K of the EDZ9 96.125 puts

crossing at 0.0250. 

- Focus today falls on services PMI/ISM non-manufacturing survey, with 3-Year

supply also due. Worth noting that the U.S. will issue some $83bn in bonds this

week via 3-, 10- & 30-Year auctions, with $86bn worth of redemptions & $36bn

worth of coupons due.

- It will also be worth keeping an eye on an Iranian rhetoric, with U.S.

sanctions against the Middle-Eastern state set to go into effect shortly.