A positive start for U.S. equities..........>

US TSYS: A positive start for U.S. equities applied pressure to the space on

Tuesday, with the market looking through soft domestic housing data. A strong

2-Year auction (stopped through by 1.2bp, with high indirect participation & a

solid cover ratio) helped the market turn bid into the close. 5- & 7-Year note

supply & a 2-Year FRN auction are due through the remainder of the week. Curve

spds finished the day little changed, as real money picked up intermediates.

- Fed's Daly noted that inflation exp. drifting lower bear close watching as she

stressed the need for patience at the Fed. This came after Fed's Harker

reiterated his data-dependent stance, while Rosengren offered his views on the

Fed's balance sheet & U.S. econ in Asia-Pac hours.

- Late NY saw the release of an NYT interview with Trump's pick to fill an empty

Fed Governor slot, Stephen Moore. "Moore said Tuesday that he regretted his

remarks about Mr. Powell, but defended his view that the Fed was wrong to raise

interest rates in Sep & Dec. He said the Fed should immediately reverse course &

cut rates by 50bp."

- T-Notes last 124.11+, U.S. 10-Year cash Tsy yields closed at 2.423%