U.S. Tsys ticked lower after U.S.......>

AUSSIE BONDS: U.S. Tsys ticked lower after U.S. President Trump noted that U.S.

GDP could be "in the 5s next quarter," while he suggested that the U.S. will

have a fantastic trading relationship with China. This comes after the

formalisation of 25% tariffs on $16bn worth of Chinese imports late Tuesday. The

move was limited and has been retraced, with T-Notes sticking to a 2+ tick

range.

- There was some downside interest in 10-Year paper with nearly 4.0K TYU8 118.00

puts crossing in early dealing.

- The Eurodollar strip is steady, operating on low volume.

- Focus turns to 10-Year supply on Wednesday, as well as comments from Fed voter

Barkin.

- T-Notes last at 119.15+, US 10-Year yields last at 2.969%.