A quiet re-open after the space was well....>

US TSYS: A quiet re-open after the space was well bid Monday, with T-Notes

closing just off highs as yields plunged. Early risk-off flows centring on trade

war worry were extended on during the 2nd half of NY trade. Fed voter & noted

dove Bullard stated that "a downward policy rate adjustment may be warranted

soon to help recenter inflation & inflation exp. at target & also to provide

some insurance in case of a sharper-than-exp. slowdown." The move got some extra

legs on the back of a RTRS sources piece noting that "the U.S. DoJ has

jurisdiction for a potential probe of Apple as part of a broader review of

whether tech giants are using their size to act in an anti-competitive manner."

Bull steepening was the order of the day, as markets switched to a more

aggressive tone re: Fed pricing. CME's Fedwatch tool points to mkt pricing a

>50% chance of at least 3 rate cuts end '19. The latest ISM m'fing survey missed

exp., although the employment & prices paid sub-indices rose at a quicker pace.

- Markets will now look to guidance from Fed's Powell & Clarida on Tuesday &

Wednesday respectively. Elsewhere, Fed's Williams & Brainard will speak on

Tuesday, with durable goods & factory orders data also due.