A tight re-open for the space, with.........>

US TSYS: A tight re-open for the space, with T-Notes last -0-02+ at 130-00 after

the contact settled higher on Monday, aided by soft EZ PMI data, although it

finished well off the early highs.

- Upticks in the rate of expansion in the local PMIs helped the contract back

from highs, with the curve finishing the day a touch steeper.

- Fedspeak saw Williams offer little fresh on the repo front and point to a

willingness to conserving the Fed's "firepower," while dovish dissenter Bullard

pushed for another 25bp cut, again. Elsewhere, Fed's Daly (non-voter) noted that

she has supported the 2 rate cuts that have been implemented by the FOMC, while

touching on liquidity matters and flagging some risks, including the commercial

real-estate sector (although she played this down, to a degree). Daly also

reiterated that the U.S. economy "is in a good place."

- The latest round of overnight repo ops saw ~$65bn allotted.

- Eurodollar futures trade 0.5-1.5 ticks lower through the reds.

- 2-Year supply will draw interest on Tuesday, with added focus on the auction

in the wake of the repo gyrations.