T-Notes -0-02+ at 130-06+ after a...........>

US TSYS: T-Notes -0-02+ at 130-06+ after a contained session Thurs, edging away

from Wednesday's lows, with T-Notes finishing off best levels. Cash trade saw

some light bull flattening. News flow re: the trade war was mostly +ve, although

BBG sources warned that the U.S. is unlikely to renew a waiver for U.S. Huawei

suppliers. Fox sources later noted that "no decision has been made on it's "too

far out". The current waivers expire Nov 17th." Elsewhere, China's Wang Yi & WH

econ advisor Kudlow pointed sounded a little more +ve on trade, while the

NY/Asia crossover saw CNBC suggest that trade talks are set to resume on Oct.

10-11, as had been widely touted elsewhere.

- The latest 7-Year auction was strong, stopping through by 0.5bp, as cover

picked up & dealer participation eased. This helped T-Notes register a fresh

session high, before the aforementioned optimism added some light pressure.

- The latest round of repo ops saw the enlarged $60bn term (14-day) ops fully

allotted & oversubscribed, while the overnight ($100bn potential size) ops were

only ~50% subscribed. Fedspeak bought little new to the debate.

- August PCE data headlines Friday's docket, with Fed's Quarles & Harker due up.