Tensions surrounding an Iranian missile.....>

US TSYS: Tensions surrounding an Iranian missile launch, North Korean rhetoric &

China's view on FedEx's performance surrounding the delivery of Huawei products

allowed T-Notes to edge higher within a tight range overnight, with the contract

last dealing at 127-10+, 0-01+ better off on the day, with one pocket of futures

buying emerging just after the cash Tsy re-open.

- Yields sit 1.2-1.5bp lower across the curve after the space spent most of

Thursday's NY session on the defensive owing to a combination of the fallout

from the ECB meeting, a stronger than exp. round of durable goods data (although

there were negative revisions) and a soft 7-Year note auction.

- The bi-partisan debt ceiling deal passed through the House yesterday, and will

now go onto the Senate.

- Eurodollar futures deal unchanged 0.5 to 1.0 tick lower through the reds.

- Focus today will fall on Q2 GDP data.