Risk negative headline flow surrounding.....>

US TSYS: Risk negative headline flow surrounding Sino-U.S. trade & U.S.

legislative matters re: Hong Kong weighed on risk appetite from the off in Asia,

although sentiment managed a recovery on news that Chinese Vice Premier Liu He

was confused, but "cautiously confident" re: signing a phase 1 trade deal with

the U.S. via BBG sources N.B. these comments came before source reports

suggested that U.S. President Trump would sign the HK bill that passed through

the U.S. House yesterday, as they were made on Wednesday.

- Tsys were at the mercy of the aforementioned news flow, and last trade unch.

at 129-25+, back from best levels, after the Liu He headlines negated the early

buying impetus that was aided by a couple of pockets of buying of TYZ9 during in

early Asia hours.

- flow-wise, the highlight was a 10.0K block buyer of the USF0 161/163 1x2 call

spread, which targets a band of a 5-15bp drop in 30-Year yields. There was also

some 2-way flow in TYF0 131.50 calls

- Addresses from Fed's Mester & Kashkari headline Thursday's local docket.