T-Notes -0-10+ at 129-26+, near where.......>

US TSYS: T-Notes -0-10+ at 129-26+, near where they went out after a roller

coaster session. The CNY fix & deeper than exp. MonPol policy easing in Asia-Pac

(New Zealand, India & Thailand) drove support into NY hours, with a Trump

tweetstorm reiterating the President's disdain for FOMC policy also noted.

- Trade war matters continued to support in the NY AM, with source stories

pointing to & confirmation of a new rule that will ban fed agencies from buying

telecom & surveillance equipment/services from 5 Chinese co.'s, incl. Huawei.

Elsewhere, SCMP sources suggested Chinese negotiators are still exp. to go to DC

in Sep, while Fox's Chinese sources noted that China exp. the recently announced

10% tariffs to go to 25% because "China will stand firm & not buy US ags."

- The rally gave way in the NY PM as equities staged a sharp recovery & the

latest 10-Year auction provided a large tail, with fresh lows seen for T-Notes.

- Voting Fed dove Evans repeated prev. comments i.e. 2 rate cuts this year would

be needed to bring inflation to his projection of 2% or a little faster. He said

there was already a case earlier in '19 for 50bp of cuts based just on inflation

& that the Fed now needs time to assess the impact of new trade tensions.