Tsys retraced from Monday's session....>

US TSY/RECAP: Tsys retraced from Monday's session lows during the latter part of

the session, with T-Notes closing out the day at/near best levels, as the curve

steepened marginally.

- Fedspeak from Clarida, Kaplan & Bostic offered little new.

- The latest 2-Year auction stopped through, at the margin, even with indirect

participation sliding, as dealer takedown increased. 5-Year supply also stopped

through, with direct participation picking up at the expense of dealers. The

respective cover ratios of both rounds of supply held fairly steady when

compared to the most recent auctions in each tenor.

- U.S. equities edged higher on the back of the U.S.-China trade developments,

finishing off of best levels after U.S. President Trump stated two powers will

"maybe get a deal done," before tweeting "China Trade Deal (and more) in

advanced stages. Relationship between our two Countries is very strong. I have

therefore agreed to delay U.S. tariff hikes. Let's see what happens?"

- T-Notes last 122.03+, U.S. 10-Year cash Tsy yields closed at 2.663%.