T-Notes bid from the restart, +0-08+ at.....>

US TSYS: T-Notes bid from the restart, +0-08+ at 130-06, with the upside impetus

provided by the latest BBG sources piece re: the trade war which noted that "the

White House is holding off on a decision about licenses for U.S. companies to

restart business with Huawei Technologies Co. after Beijing said it was halting

purchases of U.S. farming goods, according to people familiar with the matter."

- The contract stuck to the fairly wide range set in Asia-Pacific hours during

Thursday's European morning before a RTRS sources piece did the rounds in early

NY hours suggesting that Germany is mulling a 'u-turn' in fiscal policy,

considering new debt issuance to finance a climate protection package. This

resulted in fresh intraday lows before the subsequent denial alleviated some of

the pressure. A degree of concession then crept in to make room for the latest

round of 30-Year supply, pressing T-Notes to worst levels. While a tail was

apparent at auction (1.2bp) it was narrower than feared, as the cover ratio

printed in line with recent averages and dealer participation eased. This

allowed a rally to build, with the latest escalation in the Italian political

saga providing a further bid, leading to the curve twist flattening on the day.