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T-Notes +0-01 at 128-30+ after drifting.....>

US TSYS: T-Notes +0-01 at 128-30+ after drifting lower Monday as yields finished
1.4-2.6bp higher across the curve, with underperformance in the long end,
although volume was limited (partly on Japanese holidays). Optimism ahead of the
signing of the phase 1 Sino-U.S. trade deal pushed stocks higher, weighing on
USD/CNH & in turn Tsys. There was nothing in the way of sig. local data & market
looked through the latest Fedspeak from non-voters Rosengren & Bostic.
- Main news saw source reports pointing to the removal of China from the U.S.
Tsy's FX manipulator list, which came to fruition. The Tsy has placed China on
its watch list, noting that, China has made "enforceable commitments to refrain
from competitive devaluation," agreeing to publish relevant data on FX rates &
external balances as part of the aforementioned phase 1 trade deal.
- Corporate issuance continued at its brisk early year pace. This week will see
some of the major U.S. financial institutions report their quarterly earnings,
with issuance set to accelerate thereafter. Tuesday brings domestic CPI & weekly
earnings data, while Fedspeak will come from Williams & George. Elsewhere, the
NY Fed will release its updated bill buying & repo schedule for the next month.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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