Tsys sit shy of best levels as we...........>

US TSYS: Tsys sit shy of best levels as we approach European hours. Comments

from U.S. President Trump re: making a good deal with China helped to stabilise

risk, although Trump has mentioned this before. The move was aided by a RTRS

piece, which saw U.S. officials note that "the U.S. & 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 1.5-4.5 ticks higher through the reds, off highs.

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

appeared a buyer, although small selling interest was seen at 0.0250 as risk-off

flows pared, before fresh long interest at 0.0300 came back to the fore.

- Fed voter George added little to the MonPol debate overnight, with Clarida,

Bowman, Williams, Bullard & Bostic all due today.

- T-Notes last 124.27+, U.S. 10-Year cash Tsy yields last 2.349%.