Tsys experienced a rather limited start.....>

US TSYS: Tsys experienced a rather limited start to the Asia-Pacific session in

the wake of the latest round of FOMC meeting minutes and subsequent comments

from Fed Vice Chair Clarida. Fed's Daly alluded to familiar headwinds, while

stressing that there is no sign that the U.S. is nearing a recession. She also

suggested that rates are very close to neutral and that she doesn't want balance

matters to offset interest rate policy.

- Activity then picked up on the back of a RTRS sources piece which suggested

that the U.S. & China are drafting 6 MOUs on key structural issues including IP,

services, tech transfer, agriculture, currency & non-tariff barriers in their

trade talks. The report also suggested that negotiators are looking at a 10-item

list of shorter-term measures to address the bilateral trade imbalance.

- This triggered broader risk-on flows, sending T-Notes back towards Tuesday's

lows, with the belly of the cash curve underperforming.

- The white and red Eurodollar contracts trade 0.5 to 2.0 ticks lower as a

result.

- T-Notes last 122.01+, U.S. 10-Year cash Tsy yields last 2.664%.