Risk assets took a hit in early dealing.....>

US TSYS: Risk assets took a hit in early dealing as the US-China trade issue

dominated traders' thoughts, lending some support to fixed income, although

liquidity was diminished with China & HK out on holiday.

- Flow was fairly limited in the Asia-Pacific afternoon with little in the way

of catalysts apparent.

- 7-Year paper has experienced some modest outperformance.

- Back on Friday Fed non-voter Kaplan stated that he only sees three hikes in

total in 2018, despite a median of four dots from the FOMC (but he remains open

minded re: a fourth hike); while outgoing NY Fed Pres Dudley came off more

hawkish stating that the Fed needs to keep a check on growing inflation.

- The latest U.S. TICS flow data, released Friday, revealed that Russia slashed

its U.S. Tsy holdings in April, dumping just shy of half ($47.4bln) of its U.S.

Tsy holdings during the month (see e-mail at 05:48 BST 06/18 or or contact

sales@marketnews.com for access). 

- Fed's Dudley, Williams & Bostic all speak on Monday.

- T-Notes last at 119.23+, 10-Year Tsy yields last at 2.904%.