Tsys have edged higher, after they..........>

US TSYS: Tsys have edged higher, after they managed print fresh session highs as

USDJPY moved to lows. While there is little apparent in terms of fresh headline

risk it is worth noting that Trump has reintroduced questions re: the Chinese

trade situation & North Korea over the last 24 hours which may be hampering

risk. The space now operates just off of best levels. Eurodollar futures have

also edged higher, with the the white & red contracts unchanged to 1.0 tick

higher.

- Cleveland Fed President Loretta Mester told MNI that she's getting a stronger

signal from inflation. And while she thinks the committee is well positioned to

react to higher inflation, she is also cognisant of the challenges of

communicating to the market how the Fed will react to more balanced risk

scenarios going forward as it moves out of its crisis-era "lower for longer"

format of forward guidance. Participants will focus on the FOMC May meeting

minutes & 5-Year Note auction due later today.

- T-Notes last at 118.30+, yields last: 2-Year 2.564%, 5-Year 2.888%, 10-Year

3.050%, 30-Year 3.196%.