Sino-U.S. tensions surrounding U.S..........>

US TSYS: Sino-U.S. tensions surrounding U.S. legislative matters re: Hong Kong

dented risk appetite during Asia hours, with a lower LPR fixing from the PBoC

doing little to offset the broader worry. The legislative matters provided

support for Tsys from the re-open (with some hopeful comments from Wilbur Ross

re: a Sino-U.S. trade deal allowing a brief interlude). T-Notes a little shy of

highs at writing, last +0-09 at 129-23, while the 5-10 Year sector outperformed

in cash trade. Flow-wise there was small buying of the TYF0 128/126 put spread

vs selling of the TYZ9 128.75 puts & a ~ 7.0K buyer of the TYF0 126.50 puts

- Eurodollar futs sit 0.25-3.0 ticks higher thru the reds. In terms of STIR

flow, the overnight highlight saw 120.0K of the 0EF0 98.75 calls blocked vs.

40.0K of the 0EG0 98.50 calls, + 0EF0, - 0EG0. Various sources pointed to

partial liquidation of some of the larger trades seen in recent Asia sessions.

- Wednesday will see the release of the minutes from the latest FOMC decision.

As a reminder, the Fed has stressed that only a "material reassessment" of the

economic outlook would force its hand re: rate changes going forwards. Traders

will also be on the lookout for any discussion re: a standing repo facility.