T-Notes bid in early Asia trade, +0-11 at...>

US TSYS: T-Notes bid in early Asia trade, +0-11 at 131-20, on the back of a SCMP

source piece noting that the Chinese trade "delegation refuses to talk about

forced tech transfers. High-level talks are expected to last for only one day,

with Liu He & his team now planning to leave Washington on Thursday." Sino-U.S.

trade matters dominated activity on Weds, with T-Notes finishing lower as yields

moved 4.5-5.5bp higher across the curve, aided by suggestions that the Chinese

have not ruled out a "partial deal" despite recent developments, although late

RTRS source headlines noted that China has lowered exp. after Chinese entities

were added to the U.S. blacklist earlier this week. Trump played down prospects

of a partial deal, and once again noted that the deal cannot be 50/50. As we

have mentioned before, structural/deep lying matters underscore the trade war,

and there is no real sense that any ultimate endgame is in sight.

- The FOMC's Sep meeting mins reiterated data dependence & noted that some Fed

off'ls think exp. for cuts are overdone. Latest 10-Year supply was non-descript,

metrics in line with recent avgs. CPI headlines the local docket Thursday, with

Fed's Daly, Mester & Bostic due to speak. We will also see 30-Year supply.