Speculation surrounding & the ultimate......>

US TSYS: Speculation surrounding & the ultimate level of the USD/CNY fix from

the PBoC, which came in a whisker below CNY7.00, supported global core FI in

Asia-Pac hours. A deeper than exp. cut from the RBNZ & rhetoric surrounding the

work pertaining to extraordinary MonPol measures leant further support, which

allowed T-Notes to register fresh highs. T-Notes last deal +0-14 at 130-06+,

with the yield curve a touch flatter as the long end modestly outperforms.

- Decent buying of USU9 164.00 and 164.50 calls was flagged in early Asia trade.

Eurodollar futures deal 2.0-5.5 ticks higher through the reds.

- Eurodollar futures deal 2.0-5.5 ticks higher through the reds.

- Fed's Evans headlines the docket on Wednesday, with 10-Year supply also due.

Evan's appearance comes in the wake of fellow 2019 Fed voter & dove Bullard

helping to cool the odds of a 50bp rate cut in Sep, pointing to data dependence

& a desire to wait & see how last month's rate cut feeds through. Bullard also

noted that the Fed shouldn't react to every tit for tat move in the Sino-U.S.

trade spat & reiterated his support for 1 more 25bp rate cut by end '19.