Risk off flows dominated the early part.....>

US TSYS: Risk off flows dominated the early part of the session, as Trump

outlined the latest round of tariffs that will be imposed on Chinese imports.

But defensive positioning eased as we moved through Asian trade. Risk was

perhaps aided by the fact that China hasn't retaliated to the latest round of

U.S. tariffs immediately, although policymakers are set to hold a meeting to

formulate a response, according to reports. The tiered nature of the latest

round of U.S. tariffs (promoting supply chain adjustment for U.S. firms), may

also be playing a part in the move, as will the fact that the details held no

surprises, while some products that were on the proposed list were exempt from

the levies. Rehashed comments from China's Commerce Minister (originally made

Monday) noting that the U.S. & China should cooperate also helped risk, but were

a little dated. A recent SCMP piece has noted that Beijing is likely to cancel

trade talks with the U.S.

- TY options trade was active in early dealing, but has tailed off.

- Eurodollar futures last trade 1.0 to 2.0 ticks higher on decent volume.

- T-Notes last 119.05+, U.S. 10-Year cash Tsy yields last 2.994%