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 (noting that

familiar stumbling blocks in the discussions remain), Sino-U.S. trade headlines,

via the FT, applied heavy pressure. A second round of notable selling pushed

T-Notes to fresh session lows in the wake of stronger than expected Chinese

Caixin services PMI data, although the contract didn't breach Monday's lows.

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

breaching 2.50%, at the margin. Yields sit 1.8-2.7bp higher across the curve.

- On the issuance front, focus falls on the pricing of Tencent's 5-/7-/10- &

30-Year USD bonds, with expectations of $5bn worth of supply across the 4

tranches. Pricing expected later today.

- Eurodollar futures trade 0.5 to 2.0 ticks lower through the reds.

- ADP employment data, non-m'fing ISM and Markit services/composite PMIs

headline the U.S. docket today. Elsewhere, Fed's Barkin, Bostic & Kashkari are

due to speak.

- T-Notes last 123.18+, U.S. 10-Year cash Tsy yields last 2.501%.