Tsys have been on the defensive for the.....>

US TSYS: Tsys have been on the defensive for the majority of the Asia-Pac

session, with solid enough Chinese GDP & monthly activity data resulting in the

most notable bout of pressure overnight. There was little reaction to a RTRS

sources story which noted that "the U.S. may approve licenses for companies to

re-start new sales to Huawei in as little as two weeks." T-Notes last -0-06+ at

126-29, trading a touch above session lows, with the cash Tsy space closed until

the London open owing to the observation of a Japanese holiday.

- Eurodollar futures trade unch. to 2.5 ticks lower through the reds.

- Broader focus continues to fall on the "x date" whereby the U.S. Tsy would

theoretically run out of money if Congress failed to raise the debt ceiling.

Friday saw reports note that Mnuchin wrote to House Speaker Pelosi, suggesting

that the U.S. might default on its obligations as soon as early September

(earlier than prev. exp.), before Congress returns from its summer recess. This

could result in a schedule shift/rush to push through preventative legislation.

- Today's economic docket is rather thin; the Empire Manufacturing survey and an

address from Fed's Williams provide the highlights.