T-Notes operate around Wednesday's lows.....>

US TSYS: T-Notes operate around Wednesday's lows in early Asia trade. Yesterday

saw the complex move lower, with some light bear flattening apparent. Tuesday's

positive FT headlines (if a little more guarded in the detail) re: trade

matters, coupled with strong Chinese, Australian & EZ data provided weight ahead

of NY hours. U.S. service sector surveys were a little less convincing, but

still operate at strong enough levels, while ADP data disappointed.

- White House econ advisor Kudlow reiterated that U.S.-China trade talks have

some outstanding issues, although noted that good headway was being made.

- A BBG sources piece released late Weds noted that "the trade deal that the

U.S. and China are crafting would give Beijing until 2025 to meet commitments on

commodity purchases and allow American companies to wholly own enterprises in

the Asian nation." This would form a "binding pledge that can trigger

retaliation from the U.S. if left unfulfilled." The report also noted that "a

meeting date between Trump and Xi could be announced as early as Thursday."

- Late pullback in stocks had little impact on Tsys.

- T-Notes last 123.14+, U.S. 10-Year cash Tsy yields closed at 2.524%.