Washington Post headlines say.......>

US TSYS SUMMARY: Washington Post headlines say that Trump is willing to hit

China with $60bln of tariffs on Friday.

- Sterling has continued to firm as UK/EU reach a 21 month transition deal

agreement. However, thorny issues of Irish border and ECJ not addressed.

- US Treasuries are fairly flat compared to Monday evening's close, just a

0.25bp-0.5bp rise in yield across the curve as the TY followed the Bund contract

lower, the latter subject to some EUR swap paying. However, the European equity

market recovery lacked fizz and the small Treasury losses were clawed back.

- The curve is little change in slope this morning, which means most spreads are

close to recent lows. The 10-30Y looks most extreme and is at a 10 year-plus low

of 23.2bp.

- There are no data releases today although the Fed starts its two day meeting.

- T-Notes last 120.07+, US 10-Year yield last 2.863%.