A quiet re-open for T-Notes, +0-03+ at......>

US TSYS: A quiet re-open for T-Notes, +0-03+ at 130-28+.

- T-Notes went out around session lows on Monday, back towards Friday's closing

levels, reversing the bid seen in early trade, with roll activity dominating

volume. The Trump U.S./China phone call charade drove price action into the NY

morning, with focus then turning to the G7 summit. The latter provided some

optimism on trade matters & the potential for a meeting between the U.S. & Iran,

although the respective sides continue to keep their cards close to their chest.

- Stronger than exp. headline durable goods had little effect on the space, with

the ex-transport release disappointing & -ve revisions across the board.

- Cash trade saw the belly of the curve outperform at the margin, with the 5-10

Year sector going out around neutral levels, while the wings cheapened by

0.5-1.0bp.

- Late Eurodollar options flow saw a ~28K buyer of the EDH0 98.50 calls.

- 2-Year supply is due Tuesday. Markets will likely go back to China watching

overnight.