A limited start for T-Notes, last dealing...>

US TSYS: A limited start for T-Notes, last dealing +0-00+ at 128-28, a touch

below where the contract went out last week.

- Friday saw T-Notes tag a low in the wake of NFP's & a CNBC headline which

noted that Pres Trump is "open to delaying or halting the 10% China tariff on

9/1" if China were to take action between now & then. The space recovered as

trade war angst underscored safe haven demand ahead of the weekend as comments

from both Trump & Chinese off'ls provided the space with some support, while the

aforementioned headline provided no material differences to Trump's comments

made earlier in the week. Over the weekend Trump tweeted "Things are going along

very well with China. They are paying us Tens of Billions of Dollars, made

possible by their monetary devaluations and pumping in massive amounts of cash

to keep their system going. So far our consumer is paying nothing - and no

inflation. No help from Fed!" Heightened geopolitical tensions centring on the

potential placement of intermediate-range missiles in Asia by the U.S. and joint

U.S./South Korea military drills noted as we get underway this week.

- Non-m'fing ISM & comments from Fed's Brainard provide the event risk today.