White House Advisor Navarro's own take on...>

US TSYS: White House Advisor Navarro's own take on Chinese whispers, where he

appeared to deem the Sino-U.S. trade deal as "over", was the only game in town

in Asia-Pac hours. The initial round of comments drove risk-off market flows,

before pushback from Messrs Navarro, Kudlow & Trump re: what was meant/denial

that such a statement was true allowed risk to recover. This generally biased

core FI markets lower in the 2ns half of the Asia-Pac session, with news flow

light elsewhere. T-Notes unch. at 138-22+, with volume nearing an impressive

200K, while yields sit unchanged to 0.5bp richer across the cash curve.

- Reminder that the space drifted lower into the NY close on a pop in

equities/hope re: U.S. infrastructure stimulus. Monday's sparse volumes had many

pointing to summer markets, which was perhaps understandable given the limited

news flow & recent market moves. Still, this summer may not be your typical

offering, given the various, well-documented sources of risk, heightened supply

and unparalleled monetary/fiscal support offered across the globe.

- Early Asia saw light long interest in the TYU0 138.00/137.00 put spread, for a

2nd straight session. Flash PMIs, Fedspeak from Bullard & 2-Year supply due.