While there is some speculation.....>

US TSYS SUMMARY: While there is some speculation that the US-levied tariff

increase on Chinese goods may be just a temporary blip before a trade deal is

agreed, comments from US Commerce Secretary Wilbur Ross this morning suggest

that a near-term resolution could still be some way off.

- Ross suggested that the US was 'comfortable' with either outcome in

negotiations and stressed that there was a need to focus on the automobile

sector in order to reduce the trade deficit. He further indicated that President

Trump will make a decision on car tariffs by May 18.

- USTs trade weaker on the day with yields 1-2bp higher. Current yield levels:

2-year 2.266%, 5-year 2.253%, 10-year 2.453%, 30-year 2.876%.

- TYM9 trades at 123-29+, near the bottom of the day's range.

- Euro$ futures are broadly 0.5-2.0 ticks lower.