Side lined ahead of Pres. Trump/Chinese.....>

US TSYS: Side lined ahead of Pres. Trump/Chinese V. Premier Liu meeting,

scheduled for 14:45 Eastern (19:45 London). There was light pressure on the

space as Trump noted that "China has been very nice" & that "we're going to see

if we can make a deal." Although both BBG & NY Times have run source articles

re: the potential for the U.S. to limit China's access to U.S. capital mkts &

greater scrutiny on Chinese cos. A WSJ interview with Fed's Kashkari ('19

non-voter, dove) was released, noting the time has probably passed for a

supersize rate cut, but remains on board with idea that cheaper borrowing costs

are still warranted. T-Notes -0-04 at 130-18+, struggling to extend thru

Thursday's lows. There was a 7.0K buyer of the TYX9 131.75 calls, as well as a

10.0K TYX9 131.50 covered call block buyer, perhaps seeking protection against

the risk of a trade talk breakdown although short dated TY puts (expiring

Wednesday) were also in demand. There was also a 2x1 USX9 162.00 (10.0K)/161.00

(5.0K) put spread blocked, with a source pointing to a ratio roller, down & out.

- Eurodlrs -1.0-2.0 ticks thru reds, ~5.5K of the EDU0 98.50 straddle sold.

- Fed's Rosengren, Kashkari & Kaplan due today, with UoM sentiment also slated.