A quiet re-open, T-Notes last -0-01+ at.....>

US TSYS: A quiet re-open, T-Notes last -0-01+ at 127-10, with a wide-spanning

DOJ probe into tech names helping to lay a base for the contract for now.

- Although the event was somewhat telegraphed, a BBG headline noting that U.S.

off'ls will head to China on Monday applied weight to the space during the

latter part of Tuesday's session. CNBC sources were a little more sanguine, as

they suggested that "a deal is not viewed as near" & that "U.S. off'ls have

suggested they could roll back the tariffs in exchange for Beijing making the

deal legally binding - something it backtracked on in May."

- Tuesday saw sources report 2-way flow across the curve, with earlier weakness

tied to United Healthcare issuance. The result was light bear steepening.

- Elsewhere, the latest 2-Year Note auction was somewhat lacklustre, tailing

(the first such instance for this tenor in 2019), with the cover ratio softening

and primary dealer participation ticking higher (albeit more or less in line

with recent avgs).

- Local data was soft, with a particularly disappointing Richmond Fed m'fing

print providing the highlight.