Tsys initially drew support from the........>

US TSYS: Tsys initially drew support from the Chinese statement re: U.S.-China

trade talks, with mkts inferring that no major headway was made during the 3-day

sit-down & perhaps a dash of buy the rumour, sell the fact creeping in. The move

faded in the 2nd half of the Asia-Pac session. Bull steepening has been the

theme of the curve overnight, with U.S. equity index futures lower on the day.

Post-Fed mins curve steepening may have been helped by the use of the following

phrase in the release "several participants noted that a portfolio of holdings

weighted toward shorter maturities would provide greater flexibility to lengthen

maturity if warranted by an economic downturn." U.S. gov't shutdown continues

after U.S. Pres Trump stormed out of the latest cross-party leadership meeting.

- White and red Eurodollar contracts trade unch.-3.5 ticks higher, on decent

volume, back from highs. Early focus fell on buyers in EDU9. Options trades of

note: 2EH9 97.250/97.125 put spread paper paid 0-015 on 5750, EDZ9

96.875/96.750/96.625/96.500 Put Condor paper paid 0-01 on 5.0K.

- Fed Chair Powell headlines a smattering of Fedspeak Thursday.

- T-Notes last 121.30, U.S. 10-Year cash Tsy yields last 2.697%.