Risk-on flows at the re-open, buoyed by.....>

US TSYS: Risk-on flows at the re-open, buoyed by stronger than expected official

PMI data out of China over the weekend, in addition to continued optimism re:

U.S.-China trade war matters on Friday.

- Do note all of the reports re: trade matters haven't been positive. The Nikkei

wrote that "the U.S. and China will continue trade talks in Washington on

Wednesday after two days of discussions in Beijing this week failed to bridge

the gap over how additional tariffs imposed on each other's goods would be

eliminated." This came after the newswire suggested that Xi is wary re: a summit

with Trump at present.

- Friday saw Fed Gov. Quarles note that the strength of the U.S. econ may result

in additional rate hikes being required at some point, although he supported the

recent pivot to patience. Also Friday, White House econ. adv. Kudlow suggested

that Fed should immediately cut rates by 50bp (echoing Trump's Fed nominee

Moore), before Trump himself criticised the Fed's MonPol decisions via Twitter.

- The 3-Month/10-Year yield spread settled in positive territory, just.

- T-Notes last 124.03, U.S. 10-Year cash Tsy yields closed at 2.405%.