T-Notes last +0-02+ at 131-14, with the.....>

US TSYS: T-Notes last +0-02+ at 131-14, with the long end notably outperforming

in cash trade.

- Comments from U.S. trade advisor Navarro suggesting that it is unlikely that

there will be a quick breakthrough in Sino-U.S. trade talks supported the

complex. This has allowed bulls to regroup after some late steepening pressure

came to the fore on Wednesday as U.S. Tsy Sec Mnuchin noted that the issuance of

ultra-long bonds is under "very serious consideration."

- Flow-wise, the overnight highlight was a 20.0K seller of the TYV9

132.00/132.50 call spread.

- Worth recapping yesterday's strong round of 5-Year supply, which stopped

through by 1.0bp, saw the cover ratio tick up & generated solid internals,

helping to support the space later in the day, allowing T-Notes to make fresh

highs, before the late, Mnuchin-inspired pull back. Fed's Daly, Barkin and

Kaplan have offered little new.

- Eurodollar futures unch-1.0 tick higher through the reds.

- Focus Thursday falls on the second estimate of Q2 GDP and 7-Year supply.