BONDS: German and French 10yr Yields are through new Highs

E-minis slightly lower since the Chinese readout following trade talks with the U.S. crossed, but the moves are tiny.

• It doesn't look like any meaningful agreements have been struck, with Chinese language a mix of constructive and reaffirming the country's ability to act to defend its interests.
• CNH FX unmoved.

• US Tnotes/Bund spread has again found resistance at the noted level of ~195.73bps, this is providing the first upside hurdle, which also coincide with the 76.4% retracement of the February/April range at ~196.3bps.
• The spread is now close to 1bps tighter, below 194bps.
• The BTP/Bund has also reversed the small widening move, now back to flat, and tilting on the tighter side, just below 91bps, the 90bps level is key, its lowest since Mid March 2015.

(MNI) London - Reuters reporting comments from Chinese Vice Premier He Lifeng, who led China's delegation in the talks with the US that took place in London over 9-10 June. VP says: "China's stance on trade issues with the US is clear and consistent." Says that the "Two sides should enhance consensus, strengthen cooperation, and jointly safeguard the hard-won outcome from the dialogues." He Lifeng: China and US "should maintain communication" and "push for table and long-term China-US trade and economic ties." The VP says "China is sincere in trade and economic consultations, but has its principles."

• US Commerce Secretary Howard Lutnick confirmed after the talks concluded on 10 June that a 'framework deal' would be presented to President Donald Trump. Li Chenggang, from the Chinese delegation, said the same would be presented to President Xi Jinping. This framework would implement agreements reached during previous face-to-face talks in Geneva, and from the Trump-Xi call last week.
• The main topic of the talks was not the imposition of tariffs that has dominated the global news and economic cycle for the past two months, but Chinese export controls on rare earth metals that are crucial for US supply chains and US restrictions on the export of semiconductors and other related technologies linked to artificial intelligence (AI) to China.