Stronger than expected Australian data......>

US TSYS: Stronger than expected Australian data provided some modest weight to

Tsys, before the latest round of optimistic, although caveated, Sino-U.S. trade

headlines, via the FT, applied heavy pressure, with a second round of notable

selling pushing T-Notes to fresh session lows in the wake of stronger than

expected Chinese Caixin services PMI data.

- The belly of the curve has underperformed in cash trade, with 10-Year yields

breaching 2.50%, at the margin.

- Regional focus falls on the pricing of Tencent's 5-/7-/10- & 30-Year USD

issuance, with expectations of $5bn worth of supply across the 4 tranches.

Pricing expected later today.

- Eurodollar futures trade 0.5 to 2.5 ticks lower through the reds.

- T-Notes last 123.18, U.S. 10-Year cash Tsy yields last 2.503%.