Trial now

Pullback Considered Corrective


Holding Above Recent Lows


BLOCK, Large 3Y Midcurve Put Condor

US TSYS: U.S. Tsys trade higher, although T-Notes failed to consolidate above
Monday's opening levels, and the space now operates shy of session highs.
- The broader risk on flows were triggered by a BBG source report pointing to an
additional $200bn worth Chinese goods being identified by the US Trade
Representative for tariffs. With the Trade Rep confirming that "as a result of
China's retaliation and failure to change its practices, the President has
ordered USTR to begin the process of imposing tariffs of 10 percent on an
additional $200 billion of Chinese imports. This is an appropriate response
under the authority of Section 301 to obtain the elimination of China's harmful
industrial policies. USTR will proceed with a transparent and comprehensive
public notice and comment process prior to the imposition of final tariffs, as
we have for previous tariffs."
- A MOFCOM official has reiterated that China will take countermeasures against
U.S. protectionist policies.
- Participants look to U.S. PPI & a speech from NY Fed's Williams later today.
- T-Notes last at 120.08+, U.S. 10-Year Tsy yields last at 2.842%.
MNI London Bureau | +44 0203-865-3809 |