Tsys finished Thursday's session.......>

US TSY/RECAP: Tsys finished Thursday's session higher, on the back of headlines

noting that U.S. President Trump backs $200bn China tariffs as early as next

week. Trump also noted that the U.S. is studying if it should label China a

currency manipulator.

- Rates had sold off/pared gains on positive trade headlines pre-open, as

Politico reported that the EU is willing to scrap industrial & auto tariffs with

the U.S, although Trump stressed that the offer on car tariffs wasn't good

enough late in the day.

- The space had little reaction to in-line PCE data, with volume tapering off as

10-Year roll activity cooled ahead of Friday's first notice for TYU8. Underlying

month-end support was noted amid mixed two-way flow. Fast and real money a/c's

were seen buying intermediates, with bank desks buying 30s late in the day,

although the long end underperformed the belly. - Chicago PMI headlines on

Friday, ahead of the long holiday weekend in the U.S.

- T-Notes last 120.07, U.S. 10-Year cash Tsy yields closed at 2.855%.