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

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

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

multiple mentions of the symmetrical inflation objective. The most notable move

came in Fed Fund futures, with a bid noted as the Fed suggested that it is

likely that it will raise the IOER by a smaller increment (20bp) alongside the

next rate hike. The space took a fresh leg higher after WSJ reported that the

Trump admin is considering a plan to impose new tariffs on imported vehicles,

which he has now instructed the Comm Sec to investigate. The space has gained

further ground in Asia-Pacific hours as questions re: the US-North Korea summit

continue to do the rounds, with a North Korean foreign min representative noting

that he will suggest reconsidering the summit, although he did say that the

future of the summit is entirely down to Washington.

- Cash Tsys are higher, although the longer end is underperforming. T-Notes sit

just off of highs.

- The Eurodollar strip has continued to edge higher, and sits a little flatter.

- T-Notes last at 119.15+, 10-Year yield last at 2.984%.