Tsys trading mildly higher, well....>

US TSYS SUMMARY: Tsys trading mildly higher, well off early overnight highs to

near low end of range, moderate volume (TYM>310K) heading into Mar jobs data

(+195k est), AHE (+0.3% est); Fed chair Powell on eco outlook at 1330ET. 

- Strong risk-off move early Asia hours after US Pres Trump ordered Tsy Dept to

consider $100bln in additional Chinese tariffs. China says unconcerned w/trade

war, will take "new comprehensive measures" and "pay any cost to fight back."

China comm officials press conf at 0800ET. Remember, trade wars are easy to win.

US$ index softer (DXY -0.29, 90.431); equities weaker (emini -23.0, 2638.75);

West Texas crude weaker (WTI -0.58, 62.96).

- Asia, Tsy gap bid on new potential tariff increase. Tsys chopped off lows as

equities gradually recovered off lows. Sources reported initial prop and fast$

buying short end, curve steepeners vs. intermediates, real$ sold intermediates,

central bank buying tips. London, Tsys continued to recede, relative narrow

range ahead data risk and China presser

- Swaps, spds wider on light flow, payer in 7s at 2.8052%. Eurodollar futures,

mostly firmer, short end weaker after 3M LIBOR +0.0068 to 2.3374% (+0.0256/wk).