A quiet re-open for T-Notes after the.......>

US TSYS: A quiet re-open for T-Notes after the contract went out near best

levels on Tuesday, with 7-Year paper outperforming on the curve ahead of

tomorrow's supply.

- The 2- & 5- Year auctions went well on Tuesday, despite the truncated supply

schedule, and even with yields at recent lows. 2-Year supply stopped through by

1.0bp, with the cover ratio topping the recent averages. Direct participation

picked up as dealer participation subsided. 5-Year auctions saw takedown

specifics and the cover ratio broadly in line with the recent averages, stopping

through by 0.2bp.

- Block buyers of 5s & 30s added to the trend as spill over from the

developments re: U.S.-China trade & Italian budget matters leant support after

the elongated weekend.

- Also worth highlighting that U.S. equities struggled during the second half of

the day, providing further ammunition to the Tsy bid, as did lingering worry

over last week's U.S. data releases and month-end factors.

- T-Notes last 125-13, U.S. 10-Year Cash Tsy yields closed at 2.266%.