Tsys finished Tuesday's session well...>

US TSY/RECAP: Tsys finished Tuesday's session well off of highs, with the curve

sitting flatter as shorter dated yields crept higher after the BOJ induced spike

higher in the Asia-Pacific session.

- BBG reports suggesting that the U.S. & China are said to seek a restart of

discussions to defuse the trade war triggered risk on flows, although the text

of the story was a little more vague than the initial headline.

- U.S. data was largely in line with exp., while MNI's Chicago PMI headline

beat, with the prices paid sub-index registering a 10-Year high.

- Deal-tied flow was noted, as was block buying of Eurodollar 2-Year bundles &

Red packs, fast-money a/c's liquidated steepeners, with positions squared ahead

of Wednesday's FOMC MonPol decision.

- T-Notes last at 119.13+, U.S. 10-Year cash Tsy yields closed at 2.925%.