A quiet re-open for T-Notes, last +0-02+....>

US TSYS: A quiet re-open for T-Notes, last +0-02+ at 129-20+. The positive

weekend musings re: Sino-U.S. trade matters pressured the Tsy space on Monday,

even with more cautious stories (from both ourselves & Politico) evident. This

promoted a steepening of the curve, with Tsys cheapening by 3.0-7.3bp across the

curve on the day. The underlying bid across U.S. equity markets also helped, and

undermined any caution that was evident on the back of the two aforementioned

stories. N.B. we have discussed on several occasions how a "phase 1" trade deal

doesn't really bring us any closer to an ultimate end game in the trade war.

- Fed's Daly spoke in the NY/Asia crossover and provided little to rock the

boat. Monday also saw comments from the acting head of the NY Fed mkts desk,

Lorie Logan, as she noted that the Fed will adjust its Tsy bill purchases & repo

ops as needed to ensure the fed funds rate stays within the target range.

- Flow-wise, a 20.0K TYZ9 block sale helped the space move lower in U.S. hours.

- Non-m'fing ISM headlines the local docket Tuesday, with Services/Composite

PMIs also due, as well as monthly trade data. Fed's Barkin, Kaplan & Kashkari

are all due to speak Tuesday, with 3-Year Notes up on the issuance slate.