Tsys have pulled back from best levels......>

US TSYS: Tsys have pulled back from best levels over the last hour and a half.

Comments made by U.S. President Trump on Fox re: making a very good deal with

China helped to stabilise risk assets, although the President has mentioned this

many times before. Elsewhere Chinese Premier Li reiterated his country's desire

to open-up, while noting that the country will promote trade facilitation in

2019. The move was also aided by a RTRS exclusive piece, in which U.S. officials

noted that "the United States and China have made progress in all areas under

discussion in trade talks, with unprecedented movement on the touchy issue of

forced technology transfers, but sticking points remain."

- Early trade saw a bid emerge in the space, with S&P 500 futures sub-2,800

(have now reclaimed the level). T-Notes failed to break yesterday's high, while

10-Year yields managed to print a fresh YtD low, but lacked follow-through.

- Eurodollar futures trade 1.0-3.0 ticks higher through the reds, off highs.

Early flow was dominated by EDM9 97.625 calls 30.0K blocked at 0.0300, appeared

a buyer, although small selling interest seen at 0.0250 as risk-off flows pared.

- T-Notes last 124.25, U.S. 10-Year cash Tsy yields last 3.356%.