Tsys firmer but near middle of......>

US TSYS SUMMARY: Tsys firmer but near middle of range, curves mixed but mildly

steeper for most part, heavy futures volume tied to ongoing Dec/Mar futures

rolling (March takes lead Friday). 

- Somewhat misleading China/US trade headlines around 0230ET (TRUMP, XI AGREED

TO REACH MUTUALLY BENEFICIAL AGREEMENTS) spurred brief risk-on react: Tsys sold

off, equities rallied, US$/Yen jumped. Little in way of specifics (agreeing to

agree on mutual benefits...) however, saw risk-on quickly retrace, Tsys jumped

back near highs but have since settled into lower range, equities lower w/Jan 1

tariff increase threat still present. Back to headline watching (UK PM

May/Brexit, Italian budget, etc). 

- As to flow, better buying early, two-way after London cross w/prop and fast$

selling intermediates after program buying, heavy futures volume on

aforementioned rolling, corp deal and Tsy auction-tied selling, month end

buying.

- Tsy cash/ylds: 2Y 99-27 (2.831%), 5Y 99-30 (2.887%), 10Y 100-18 (3.057%), 30Y

101-05.5 (3.312%).