Tsys are lower, operating around worst......>

US TSYS: Tsys are lower, operating around worst levels with the belly

underperforming, although ranges remain tight.

- The underlying risk appetite stemmed from an ABC sources piece which suggested

that US Treasury Secretary Mnuchin has urged Trump to exempt Canada from the

steel & aluminium tariffs. Although the piece noted that not all of the advisers

present, including trade hawk Peter Navarro, were in agreement, according to two

sources familiar with the conversations. They say the group has been known to

harbour ideological differences on major economic issues and the meeting

adjourned without any clear resolution to the matter.

- Lower tier dated releases seen through to the FOMC decision next week, with

participants viewing a hike as a done deal.

- The Eurodollar strip is trading a little lower/mildly steeper, with muted

activity apparent through Asia-Pacific hours. 

- T-Notes last at 119.17+, US 10-Year Tsy yields last at 2.937%.