The Tsy complex has moved lower,............>

US TSYS: The Tsy complex has moved lower, alongside the break in JGBs, and last

operates around session lows. Up until then the space had spent most of the

early part of the Asia-Pacific session unwinding the early bid that came on the

back of headlines suggesting that the U.S. is considering levying a 25% tariff

on $200bn worth of Chinese goods, up from the prior 10%, although the sources

attributed did concede that the touted higher tariffs may not come to pass.

- The Tsy curve is trading a touch steeper last.

- The Eurodollar strip has edged lower, tracking Tsys.

- Focus on Wednesday falls on the FOMC MonPol decision, where the Fed is

expected to leave its MonPol settings unchanged and lay the groundwork for a

September hike (95% priced according to MNI PINCH). focus will be on any

commentary regarding the trade disputes, recent U.S. GDP data and the yield

curve.

- T-Notes last at 119.10, US 10-Year cash Tsy yields last at 2.975%.