The space saw a pickup in activity on the...>

US TSYS: The space saw a pickup in activity on the back of a SCMP source piece

which noted that "the U.S. and China have tentatively agreed to another truce in

their trade war in order to resume talks aimed at resolving the dispute." As

mentioned elsewhere, while the SCMP piece revealed little new (very similar to a

BBG sources piece earlier this week), the market reaction reiterates the

relatively pessimistic expectations heading into the G20 summit, with bonds

coming under pressure as result. A bounce back in Chinese industrial profits

will also have aided sentiment. T-Notes last -0-02+ ticks at 127-16+, while the

curve saw some light flattening. Space moved back from overnight lows after the

initial sell off, potentially as market deemed the SCMP piece "old." A 15.0K

block buyer of TYU9 helped. Elsewhere there was a 20.0K block buyer of the FVU9

117.75/117.25 put spread, seller of FVU9 117.00 puts and a buyer of the TYQ9

128.75/129.50 1x2 call spread. Eurodollar futures 0.5-2.0 ticks lower thru the

reds. The EDU9 97.875/97.750 put spread saw some light activity.

- 7-Year supply & the third reading of Q1 U.S. GDP provide the highlights today.

With the build up to the G20 summit also eyed.