Tsy trading mixed with the long.....>

US TSYS SUMMARY: Tsy trading mixed with the long end outperforming, strong

volume (TYZ 1.83M), curves flattening. Data today led by PCE, Personal Income,

and Spending and Initial Claims.

-Fed Minutes showed that most see another rate hike soon and further gradual

hikes are in line with dual mandate while few saw funds rate near neutral.

-Headlines out this afternoon, "*TRUMP SAYS HE IS CLOSE TO DOING SOMETHING WITH

CHINA-bbg" which led to a risk-on price action. Shortly after, "*U.S., CHINA

EXPLORING DEAL TO DE-ESCALATE TRADE TENSIONS: DJ-bbg" and "*U.S. WOULD SUSPEND

FURTHER CHINA TARIFFS THROUGH SPRING: WSJ-bbg". Sources say that Chinese

officials would agree to lift restrictions on Chinas purchases of US farm and

energy products in return for the suspension of tariffs. 

-DXY up +.017, 96.803 (96.626L/97.005H), $/Eur down +0.0021 at 1.1387, $/Yen

down -.25 113.42; equities higher (emini +5.50, 2747.00 vs. 2754.50H); Gold up

(XAU +2.87, 1224.09), WTI currently down (WTI +1.06, 51.35). 

-Tsy cash/ylds: 2Y 99-28.25 (2.811%), 5Y 100-3.5 (2.850%), 10Y 100-25.5

(3.030%), 30Y 100-28.5 (3.327%).