Tsys ticked away from Asia-Pacific lows.....>

US TSYS: Tsys ticked away from Asia-Pacific lows on the back of the more

cautious rhetoric re: trade matters employed in Xinhua's commentary piece, after

the delay of the next round of U.S.-China trade tariffs, and Trump pointing to a

summit with Xi boosted risk in early Asia-Pacific trade. Friday saw a bid creep

into Tsys late in the day, although the curve still twist steepened as risk

benefitted from Sino-U.S. trade talk optimism. Fed Vice-Chair Clarida noted that

the Fed could allow inflation to run over the 2% target as he gave a nod to the

potential for average inflation targeting, with the Fed set to conduct a broad

review of its policy framework. Friday also saw the release of the text of Fed

Chair Powell's semi-annual testimony to congress, which revealed little fresh.

- Yields still a touch higher across the curve, albeit at the margin.

- Flow has been fairly limited. One block trade flagged earlier on, TYJ9

122.00/120.50 put spread 5.0K blocked at 0-13, sources pointed to a seller.

- White & Red Eurodollars trade unchanged to 1.5 ticks lower at writing.

- Fed's Clarida will speak again today, with 2- & 5-Year supply also due.

- T-Notes last 122.03, U.S. 10-Year cash Tsy yields last 2.655%.