Positive headline flow from White House.....>

US TSYS: Positive headline flow from White House Press Sec Grisham pointing to a

"very, very optimistic" outlook re: a phase 1 trade deal with China was quickly

flushed out by trade advisor & well-documented hawk Peter Navarro, as he noted

that "there is no agreement at this time to remove any of the existing tariffs

as a condition of the Phase One deal. And the only person who can make that

decision is President Donald J. Trump. And it's as simple as that." This

resulted in choppy price action for Tsys overnight.

- TYZ9 +0-03 at 128-15+ at writing, just off highs, several 2.0-2.5K block sales

of TYZ9 helped keep bulls in check. Elsewhere, there was 15.0K block seller of

the USF0 157/155/154/152 put condor. Also a decent seller of the TYZ9 129.25

calls on screen. Yields +0.1bp to -1.9bp, light twist flattening of curve.

- RTRS ran comments from Fed's Bostic, who noted that he would not have

supported the last rate cut if he had a vote on the FOMC. Interesting given his

typically dovish leanings in the past.

- Eurodollar futures unch. to 2.0 ticks higher through the reds.

- Flash UoM sentiment data and Fedspeak from Daly due later today.