T-Notes went out at/near best..........>

US TSY/RECAP: T-Notes went out at/near best levels, recovering late on after

stronger than expected EZ PMI & U.S. ISM non-m'fing data applied some pressure

earlier in the day.

- Focus continues to fall on U.S.-China trade headlines. U.S. Secretary of State

Pompeo noted that Trump "will walk" if the China trade deal is not "perfect,"

although he followed this up with a more pragmatic tone: "will keep banging away

at it" if deal "doesn't work".

- Fedspeak was hardly compelling. Fed's Rosengren pointed to patience, noting

that downside risks have increased recently. Fed's Kashkari suggested that the

economy has not reached a state of full employment, while Fed's Barkin stated

that wages have started to increase.

- Tuesday saw two-way flow & position squaring ahead of mid-week data, as well

as decent deal-tied flow.

- U.S. ADP and the release of the Beige book headline on Wednesday, with Fed's

Williams and Mester set to speak.

- T-Notes last 121.28+, U.S. 10-Year cash Tsy yields closed at 2.717%.