US Treasuries have pretty much......>

US TSYS SUMMARY: US Treasuries have pretty much revised all their sharp risk-off

gains seen overnight night in Asia as China's initial retaliation to the US

trade tariffs is relatively tame for now. While markets also talk about an over

reaction in Asian equities. 10-yr Tsy is 0.9bp lower at 2.815%.

-  The resignation or firing (depending on your point of view) of Lt. Gen.

McMaster also initially added to safe-haven flows, however reports that it could

actually stop Trump ousting further members of his administration team has taken

some of the political risk out of the equation for now

- Also supporting the unwind of risk-off sentiment was what appeared to be a

5-yr/30-yr steepener trade blocked in US futures -- 8,448 FVM8 @ 114-06+ vs

1,518 WNM8 @ 157-25

- In swaps there have been a number of flows in the 4-yr, 5-yr and 6-yr sector

with the stand out one being what appeared to be receiving in the belly of a a

USD142 DV01 4Y-5Y-6Y swap b-fly.

- Attention now turns to release of US durable goods orders and number of Fed

speakers today -- Kashkari, Kaplan, Rosengren.