T-Notes moved sharply lower (although the...>

US TSYS: T-Notes moved sharply lower (although the move was fairly limited) as

SCMP reported that China's top trade envoy is travelling to the U.S., with the

long end underperforming in cash trade & modest steepening seen. The early part

of session saw T-Notes tick above Monday's high before touted off'l intervention

in USD/CNY via state owned banks limited broader risk off flows. T-Notes hover

off of session lows last, as participants question whether or not the latest

U.S.-China trade-advances will bring about a longer term thaw in relations.

- Monday's session saw equities hit lower, with worries over North Korean

missile construction, as well as U.S. trade policy re: auto tariffs & fighting

China's IP theft via export controls adding weight.

- We also heard from Fed's Daly, who noted the need for gradual normalisation.

Daly went on to outline her data dependant stance, while noting that she hasn't

yet decided on whether she will vote for a December rate hike or not.

- Notable flow: Block Trade registered at 02:26:15 GMT, 21:26:15 NY, FVZ8 9750

blocked at 112.1175, sources suggest it was a buyer.

- T-Notes last 118.09+, U.S. 10-Year cash Tsy yields last 3.169%.