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US-China trade headlines continue...>

US TSYS SUMMARY
US TSYS SUMMARY: US-China trade headlines continue to be the dominant driver of
Tsys, with back-and-forth headlines Monday about the current state of play.
- Sep 10-Yr futures (TY) last down 2/32 at 130-28.5 (L: 130-25 / H: 131-19.5).
- Pres Trump said a little before 0300ET that China called 'our top people' over
weekend to restart talks, expressing optimism over a deal soon. Stock futures
rallied; Tsys unwound gains in Asia-Pac session.
- But maybe little has changed: both China MOFCOM spokesman and Global Times
editor Hu said no high-level bilateral calls were made this weekend.
- Equity futs still clinging onto gains but pared slightly on those headlines.
- Note, cash Tsy trading resumed 0600ET with yields sharply higher vs Asia close
(0200ET), 10-Yr earlier hit 1.4409%.
- Latest levels: 2-Yr yield is down 1.5bps at 1.5185%, 5-Yr is down 1bps at
1.4074%, 10-Yr is down 1.2bps at 1.5232%, and 30-Yr is down 2.2bps at 2.0029%.
- Potentially more headlines coming with G7 yet to wrap up; awaiting 0930ET
press conference between Trump and France's Macron.
- Data kicks off this week with Durable Goods at 0830ET.

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