T-Notes finished a touch higher Thurs,......>

US TSYS: T-Notes finished a touch higher Thurs, trading in a narrow range as the

curve flattened at the margin. Weaker than exp. German factory orders data put a

bid in during EU hours, with a focus on the U.S.-China trade talks noted.

- After all the rumours the talks seemingly heralded little in the way of firm

progress, Trump suggested that a summit with Xi may take place in ~4 weeks time.

The remainder of his comments were a mixture of positive & aggressive, in

typical Trump fashion. China's top trade envoy noted that "good progress" was

made, although Messrs Lighthizer & Navarro seemed a little more cautious.

- Trump confirmed that he will nominate Herman Cain for a seat on the Fed board.

- Fed's Williams went over points of a speech given on Mar 6, noting that MonPol

is in the right place & pointed to a positive econ outlook. Fed's Mester noted

that the Fed Funds rate may need to move higher if the econ meets exp., but she

also noted that it is possible that the Fed is done with hikes in the current

cycle. Fed's Harker reiterated that he is still in wait & see mode. He sees 1

hike at most in '19 & 1 in '20. He doesn't exp. any rate cuts over that horizon.

- T-Notes last 123.16+, U.S. 10-Year cash Tsy yields closed at 2.515%.