Risk-off flows evident in Asia-Pac..........>

US TSYS: Risk-off flows evident in Asia-Pac equities owing to the ratcheting up

of U.S.-China trade hostilities in the tech space made for consolidation/a

slight extension of Wednesday's core global FI bid during Asia hours. Yields a

touch softer across the curve. The complex showed very little reaction to the

minutes from the Fed's May meeting. The minutes revealed that the FOMC's patient

stance on interest rates would likely remain appropriate "for some time." Many

officials viewed the recent dip in PCE inflation as "likely to be transitory,"

attributing the softness to idiosyncratic factors.

- Flow wise the highlight was 30.0K FVM9 115.75 puts that were covered vs 2.4K

FVM9 at 116.00 on block.

- Eurodollar futures trade 0.25-3.0 ticks higher through the reds. The EDZ9

97.375/97.125/96.875 put fly saw a 2.0K lift, with some light interest in

lifting the EDU0U1 futures spread also noted.

- Flash Markit PMI's & Fedspeak from Kaplan, Daly, Bostic & Barkin headline

today, while the Tsy will bring 10-Year TIPS to market.

- T-Notes last 124-16+, U.S. 10-Year cash Tsy yields last trade at 2.379%.