T-Notes legged lower on the back of.........>

US TSYS: T-Notes legged lower on the back of Trump's latest comments re: trade

with China, but the move to fresh session lows was quickly retraced, with

T-Notes operating in a tight range overnight.

- As a reminder, BBG ran comments from Trump as he noted that Chinese President

Xi "wants to make a fair trade deal," but stressed that "we have to make the

right deal."

- The comments re: the right deal, likely limited the move.

- Yields are 0.6-0.9bp higher last.

- U.S. equity index futures were initially pressured after the Wall St. bell, on

Apple's miss on iPhone sales, softer guidance than most were looking for and

removal of iPhone, iPad & Mac individual unit sales from futures earnings

releases. U.S. index futures did move higher alongside Asia-Pacific shares in

early Friday dealing, but now sit shy of best levels.

- The Eurodollar strip trades unchanged to 1.0 tick higher last.

- T-Notes last 118.18+, U.S. 10-Year cash Tsy yields last at 3.138%.