US Tsys stuck to a tight range operating....>

US TSYS: US Tsys stuck to a tight range operating around closing levels. The

curve sits a little flatter with the long end outperforming, although yields are

back from session lows. The Eurodollar strip has traded in a lacklustre manner.

There have been several notable headlines released overnight. A report from the

Washington Post noted that US President Trump is set to announce steel and

aluminium import tariffs on Canada, Mexico and the EU on Thursday and suggested

that import taxes could take effect as soon as Friday. Chinese official PMI data

came in slightly stronger than expected. Finally China noted that it will reduce

curbs for investment in its energy, infrastructure & transportation sectors,

with a list on the matter set to published by the end of June. China hopes that

the US will not escalate the trade war situation, but has reserved the right to

take countermeasures if the US does act.

- T-Notes (TYU8) last at 120.07, US Tsy Yields: 2-Year 2.411%, 5-Year 2.679%,

10-Year 2.848%, 30-Year 3.017%.

- Thursday will bring US PCE, Chicago PMI & comments from Fed Governor Brainard,

voter Bostic & non-voter Bullard.