A quiet re-open for futures. T-Note.........>

US TSYS: A quiet re-open for futures. T-Note volume was limited on Monday, with

the contract subjected to shortened trading hours, with cash markets closed

owing to the Memorial Day holiday. This resulted in a tight range being

observed. T-Notes last 125-01+.

- After edging lower during Asia-Pac hours, comments from U.S. Pres. Trump re:

"not ready to make a deal with China," helped put a bottom on the space in early

European trade. The move higher extended on jitters surrounding Italy in the

wake of the EU elections. Deputy PM Salvini struck an aggressive tone re: tax

cuts & opposing austerity, before BBG sources suggested that "the EC is

considering proposing a disciplinary procedure for Italy next week over its

failure to rein in debt, which could pave the way for a 3.5 billion-euro

penalty." Salvini's reply, if the EU sends a letter then the government will

reply by saying that Europe's era of uncertainty & unemployment is over.

- The contract closed just off best levels.

- The markets will have to digest 2- & 5-Year supply on Tuesday. Domestic data

is mostly second tier.