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

US TSYS
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%.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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