T-Notes are offered in the wake of the......>

US TSYS: T-Notes are offered in the wake of the U.S.-Mexico deal struck late

Friday, although the "proof will be in the pudding" going forwards (see earlier

bullet at 23:00 BST re: weekend comments on the deal). This comes after the

space turned well bid on Friday in the wake of an extremely soft NFP reading,

which undershot all of the exp. in the BBG survey. The ADP print gave a warning

of a soft NFP earlier in the week, but most economists seemingly favoured

following labour market signals in the "soft" survey data, which had been more

upbeat on net. Fed Fund Futures finished Friday pricing an ~87% chance of at

least 25bp worth of easing come the end of the FOMC's July meeting, with a 20.7%

chance of 50bp worth of easing priced over that horizon.

- The G20 sidelines saw little in the way of any surprises re: U.S.-China talks

as U.S. Tsy Sec Mnuchin played down any hopes of advances before Trump & Xi

meet. Mnuchin spoke with PBoC Governor Yi Gang, and noted that the dialogue was

constructive, and contained a candid discussion on trade issues.

- T-Notes last -0-13 at 126-26, with Chinese trade data topping the bill in

Asia-Pacific hours.