T-Notes moved sharply lower on the back.....>

US TSYS: T-Notes moved sharply lower on the back of SCMP headlines re: China's

top trade envoy travelling to the U.S., with the long end underperforming in

cash trade, allowing some modest flattening to occur. The early part of session

saw T-Notes tick above Monday's high before touted official intervention in

USD/CNY via state owned banks limited broader risk off flows.

- Since then, U.S. index futures moved away from lows, with risk appetite

picking up on the back of the aforementioned SCMP headline.

- 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. This leant a bid to Tsy

futures, with cash markets closed for Veterans Day.

- We also heard from Fed's Daly, who noted that "the U.S. econ at full

employment with stable prices calls for a gradual normalization of monetary

policy." 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.

- T-Notes last 118.08+, U.S. 10-Year cash Tsy yields last 3.171%.