Treasuries have been weighed down...>

US TSYS SUMMARY: Treasuries have been weighed down by optimism of a

de-escalation in China-U.S. trade tensions, and talk of ultra-long issuance.

- China`s Commerce Ministry said early Thurs that Beijing is eyeing September

talks with the U.S.; indicated would not retaliate on new U.S. tariffs.

- Equities shot higher with global safe haven FI selling off; S&P futures rose

0.9% and have held on to those gains. 

- Sep 10-Yr futures (TY) down 6.5/32 at 131-5 (L: 131-02 / H: 131-17).

- Short-end outperforming: 2-Yr yield is up 1.8bps at 1.518%, 5-Yr is up 0.6bps

at 1.3849%, 10-Yr is up 1bps at 1.4895%, and 30-Yr is down 0.7bps at 1.9647%.

- Long end possibly also subdued by U.S. Tsy Sec Mnuchin comments late Weds that

the issuance of ultra-long bonds is under "very serious consideration."

- No speakers today following fairly unexciting Barkin, Daly, Kaplan comments

Thursday; data includes 2nd reading of Q2 GDP, adv inventories / goods trade,

weekly jobless claims data.

- Also note $32B 7Y note auction.