Tsys have been underpinned by broader.......>

US TSYS: Tsys have been underpinned by broader risk-off flows overnight, with

T-Notes trading at best levels as we approach European hours. The yield shift

has been relatively parallel across the curve. Some pointed to the breakdown of

the latest Nikkei manufacturing PMI out of Japan as the driving factor behind

the broader risk off flows, as it noted that the "survey does bring some

cautious undertones to the fore, however. Export orders declined at the fastest

pace in >2 years, while total demand picked up only modestly. Confidence also

continued to fall, a 7th straight month in which this has now occurred. The

prospects heading into 2019 ahead of the sales tax hike still appear skewed to

the downside." Others are pointing to a re-hashed story re: Trump and hush money

discussions (although this hit in Wall St. hours). Also worth noting that the

Nikkei 225 closed 2% lower.

- White & red Eurodollar futures trade 0.25 to 3.0 ticks higher last, small

seller of EDZ9M1 noted, with ~5.0K given in smallish clips early on in Asia.

- Focus now turns to retail sales data today & next week's FOMC MonPol decision.

- T-Notes last 120.12+, U.S. 10-Year cash Tsy yields last 2.891%.