T-Notes draw some light support from the....>

US TSYS: T-Notes draw some light support from the lack of deal in the latest

round of U.S.-Mexico trade talks, with the contract last +0-01 at 127-00+. This

wasn't a surprise on the back of RTRS source pieces indicating that Mexican

off'ls may push for some ideas that the U.S. would find unpalatable. T-Notes

finished Wednesday well shy of highs, with the curve twist steepening. Much

weaker than exp. ADP put a bid in, before a stronger than exp. ISM non-m'fing

print allowed a fade (uptick in the labour market subcomponent noted). Also, a

BBG headline from WH admin advisor Navarro stated that tariffs on Mexico "may

not go into effect" added some pressure (may have been out of context).

- Also worth noting some highlights from Wednesday's Fedspeak. Gov. Brainard

noted that "trade policy is definitely a downside risk to the economy, and our

job is to sustain the expansion and we'll need to see going forward what that

means for policy...repared to adjust policy to sustain the expansion."

Elsewhere, Evans sounded a little more guarded than he did on Tuesday,

highlighting that he is a bit nervous re: weak inflation & that it would be

prudent to look at MonPol settings, although still pointed to a healthy econ.