Yields ticked higher Thursday, with bear....>

US TSYS: Yields ticked higher Thursday, with bear flattening noted. Mid-NY

morning saw a heavy selling programme across futures. Optimism surrounding

U.S.-China trade matters continued to do the rounds, with top level U.S.

officials in China, ahead of the return visit next week, although WH eco advisor

Kudlow warned against the idea of an imminent deal.

- Fed's Williams suggested that the recent yield curve inversion doesn't

necessarily point to a recession & that the econ is slowing to a more

sustainable pace. Vice-Chair Clarida reiterated the need for a patient stance,

highlighting global risks. Bullard is speaking at writing, suggesting Fed

normalisation has probably gone as far as is possible.

- Thursday also saw some focus on a WSJ sources article, which suggested that

the co. "plans to issue a $10 billion bond as early as next week."

- The latest 7-Year auction passed smoothly, stopping though by 0.9bp, with

indirect participation picking up. The cover ratio ticked down when compared to

the previous auction, but still hovered just above the 6-auction average.

- T-Notes last 124.13+, U.S. 10-Year cash Tsy yields closed at 2.395%.