Tsys have edged lower, although T-Notes.....>

US TSYS: Tsys have edged lower, although T-Notes are off of worst levels after

regional stocks moved back from session highs, with risk sentiment buoyed in the

early part of the Asia-Pacific session following Wednesday's WSJ story re:

U.S./China trade talks. Mainland Chinese stocks sit near neutral levels, with

traders still jittery as the spectre of the trade war hangs over them.

- Higher AU yields following a strong AU labour market report also added weight.

- Wednesday drew dovish remarks from Fed's Bullard which resulted in little

fresh information, while Fed's Brainard noted that further gradual hikes are

likely to be appropriate, with above neutral rates likely to be warranted.

- Wednesday also bought a strong 10-Year Note auction, which stopped through by

0.5bp, with the cover ratio edging higher and dealer takedown easing. - Early

Asia dealing saw selling interest in EDM9M0 & EDZ9Z0. The Eurodollar strip last

trades unch. to 1.5 ticks lower. In Fed Funds futures Wednesday saw a late 100K

seller in FFV8.

- U.S. CPI, Fed's Bostic & 30-Year supply headline Thursday.

- T-Notes last 119.12+, U.S. 10-Year cash Tsy yields last 2.964%.