Tsys drew support from the Chinese..........>

US TSYS: Tsys drew support from the Chinese statement re: the recent U.S.-China

trade talks, with markets inferring that no major headway was made during the

3-day sit-down. Bull steepening has been the theme in early Asia-Pacific trade,

with U.S. equity index futures lower on the day. Post-Fed mins curve steepening

may have been helped by the use of the following phrase in the release "several

participants noted that a portfolio of holdings weighted toward shorter

maturities would provide greater flexibility to lengthen maturity if warranted

by an economic downturn." Fed Chair Powell headlines a smattering of Fedspeak

Thursday. Space trades back from best levels last with risk-off move lacking

follow through. U.S. gov't shutdown matters continue after U.S. President Trump

stormed out of the latest cross-party leadership meeting.

- White and red Eurodollar contracts trade unch.-4.0 ticks higher, on decent

volume. Early focus fell on buyers in EDU9. Options trades of note: 2EH9

97.250/97.125 put spread paper paid 0-015 on 5750, EDZ9

96.875/96.750/96.625/96.500 Put Condor paper paid 0-01 on 5.0K.

- T-Notes last 121.31, U.S. 10-Year cash Tsy yields last 2.692%.