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

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

provided some modest risk on flows, which briefly allowed T-Notes to edge back

from session highs. The contract last deals in the middle of its 4-tick range.

- T-Notes have ticked higher, although activity has been lacklustre, as markets

await the Mid-term elections and latest FOMC MonPol decision later this week.

- Yields are 0.4 to 0.8bp lower across the Tsy curve at writing, with a downtick

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

- Limited Eurodollar activity was observed. Highlight being 6.0K of the EDZ9

96.125 puts crossing at 0.0250, looks like flow came from a buyer.

- 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 now in effect.

- T-Notes last 118.03+, U.S. 10-Year cash Tsy yields last 3.205%.