US Tsys have traded on the front foot.......>

US TSYS: US Tsys have traded on the front foot amid risk-off flows as US

President Trump ordered the US Trade Rep to identify an additional $200bln in

Chinese goods for tariffs at a rate of 10%, this is a larger nominal amount than

had been expected.

- These comments had T-Notes (TYU8) testing Friday's high of 129.27+, which

broke after China vowed to take strong countermeasures if the US issues a new

sanctions list. Although the contract failed to test resistance at 120-00+ (High

June 7). T-Notes have made fresh highs in early EU dealing.

- The belly of the curve has experienced some slight outperformance.

- Late on Monday new NY Fed Pres Williams offered little new, as he noted that

he sees strong economic growth & a strong labour market, with inflation near the

Fed's goal.

- Fed non-voter Bullard is due to speak on Tuesday.

- The Eurodollar strip has followed Tsys higher, sitting a touch flatter.

- T-Notes last 119.30, US 10-Year Tsy yield last at 2.880%.