T-Notes have edged higher and operate.......>

US TSYS: T-Notes have edged higher and operate around best levels, as

Iranian-Israeli tensions simmered, with reports of missiles being fired between

Israel & Iranian assets in Syria supporting the space, which has allowed the

curve to flatten, as 10-Year yields trade back below 3.00% & rumoured buying

interest from Japan supports.

- Elsewhere, news flow has centred on China-US trade relations, with MOfCom

reiterating its plea to the US to reassess its trade stance.

- The latest 10-Year Note auction passed smoothly with a steady bid to cover

ratio, minor tail & smaller takedown as indirect participation edged higher.

- The white & red Eurodollar contracts are trading unch. to 1.0 tick higher.

- Focus on Thursday will fall on US CPI data & 30-Year supply, with participants

also keeping an eye on the BoE MonPol decision & QIR, as well as the press

conference headed by BoE Gov. Carney.

- T-Notes last at 119.10, Tsy ylds: 2Y 2.526%, 3Y 2.674%, 5Y 2.830%, 7Y 2.945%,

10Y 2.980%, 30Y 3.150%