US 10year Tsy futures are 2 ticks higher....>

US TSYS: US 10year Tsy futures are 2 ticks higher on the day, extending

yesterday's gains as the relief rally in global stocks gives way to renewed

selling pressure in part due to the lack of constructive comments from President

Xi's speech regarding trade. 

- Xi used the platform of the 40th anniversary of China's economic reforms to

deliver a few jabs at the US, noting that 'no one is in a position to dictate to

China what should be done' re reforms, and there are 'no golden principles or

arrogant teachers for reform'.  

- 10year cash yields are down 1bps as the 2s-10s curve remains near yesterday's

highs.

- While markets are still anticipating a hike at tomorrow's FOMC, a further

round of equity weakness today could tip the balance in favour of a hold, or

raise the prospect of cuts in 2019.