T-Notes initially drew support from the.....>

US TSYS: T-Notes initially drew support from the latest BBG story re: U.S.-China

trade talk impasse, with risk-off flows apparent in the wake of the story

hitting, although the contract stuck to a narrow range, with U.S. cash markets

closed for Martin Luther King Day.

- Contract pulled back from best levels on the back of Chinese GDP data meeting

exp., on both a 2018 & Q418 basis. Futures then ticked back to best levels

subsequently, with little in the way of fresh news flow apparent.

- The Eurodollar strip followed the broader risk flows, with the whites and reds

up 1.5 to 2.5 ticks at writing, modest selling in EDM9 & EDZ9 helped the strip

to edge back from best levels earlier in the session.

- With the U.S. closed for a market holiday, focus Monday is set to fall on

Brexit matters in the UK.

- T-Notes last 121.09+, U.S. 10-Year cash Tsy yields closed at 2.784%.