Tsys traded higher in the lead-up to...>

US TSY/RECAP: Tsys traded higher in the lead-up to May FOMC minutes release and

showed little react to dovish/less hawkish tone (depending on viewpoint) with

multiple mentions of the symmetrical inflation objective.

- Markets may not have digested the mention of tweaking of the IOER, although an

ensuing bid was noted in Fed Fund futures.

- The space took a fresh leg higher after WSJ reported that the Trump admin is

considering a plan to impose new tariffs of up to 25% on imported vehicles on

national-security grounds

- The curve bull flattened on the day, with 10-Year yields closing sub 3.0%.

- Heavy futures volume was noted, aid by large Jun/Sep rolling

- The space had been supported by worry over Italy, Turkey, China trade, EM

stress & North Korea, and was aided by weak German/UK.

- The Eurodollar strip closed around highs.

- T-Notes last at 119.13+, US 10 Year yields closed at 2.993%.