T-Notes went out near highs on Thursday,....>

US TSYS: T-Notes went out near highs on Thursday, Soft Q1 PCE overshadowed the

2nd GDP estimate & will put Friday's April PCE reading under increased scrutiny.

- Fed Vice Chair Clarida said "let me be very clear, that we're attuned to

potential risks to the outlook. If we saw a downside risk to the outlook, then

that would be a factor that could call for a more accommodative policy." This

came after he reiterated that Fed's stance is appropriate & that the U.S. econ

is in a good place.

- The trade situation continued to bubble; CNBC reported that U.S. VP Pence is

planning a speech around the 30th anniversary of China's Tiananmen Square

protests. CNBC noted that it will likely focus on "China's human rights record"

& suggested that this "could be a venue for a sanctions announcement." Pence

also spoke on Thursday, suggesting that the U.S. can "more than double" tariffs

on China if needed. He also noted that the US has been "clear" in considering

Huawei to be "incompatible with security interests of the US & its allies."

- Focus in Asia hours will fall on Chinese PMI.

- T-Notes last 125-24, U.S. 10-Year cash Tsy yields closed at 2.213%.