T-Notes have edged higher in early..........>

US TSYS: T-Notes have edged higher in early Asia-Pac trade, with trade war worry

underscoring demand. The contract finished around the middle of its range on

Thursday, with trade matters dominating proceedings. The belly outperformed in

cash trade, with the 3-Month/10-Year spread briefly inverting. Tsys retraced

from best levels after President Trump noted that it was still possible for the

U.S. & China to reach a deal this week, after he received a "beautiful" letter

from Chinese President Xi, which suggested that the two superpowers work

together to see if they can get something done. The Editor in Chief of China's

state-owned Global Times provided several downbeat headlines throughout the day,

which helped to support risk-off flows. The latest round of trade talks are

ongoing, with the increased tariffs set to go into play at 00:01 Eastern.

- Fedspeak had little effect on the space, with the same holding true for second

tier U.S. data, that is understandable against the current risk backdrop.

- The latest 30-Year auction saw a modest tail, with relatively steady cover

ratio and participation breakdown.

- T-Notes last 124.02,U.S. 10-Year cash Tsy yields closed at 2.442%.