A very limited re-open for T-Notes,.........>

US TSYS: A very limited re-open for T-Notes, +0-03+ at 131-08.

- The contract unwound a chunk of Monday's decline on Tuesday, as the 2-/10-Year

inversion deepened, resulting in a 2nd consecutive close in -ve territory for

the spread. Looking at headline flow, Beijing denied Trump's claims of a

Sino-U.S. phone call re: trade, while Iran pulled a tougher line re: chances of

a meeting with the U.S. Elsewhere, ex-NY Fed Pres. Dudley caused a bit of a

stir. A BBG opinion piece saw Dudley write "U.S. President Trump's trade war

with China keeps undermining the confidence of businesses & consumers, worsening

the econ outlook. This manufactured disaster-in-the-making presents the Fed with

a dilemma: Should it mitigate the damage by providing offsetting stimulus, or

refuse to play along? If the ultimate goal is a healthy economy, the Fed should

seriously consider the latter approach."

- The latest 2-Year Note offering was virtually on the screws, with the cover

ratio ticking higher & indirect participation surging. Dealer participation

edged up, marginally.

- Fed's Barkin & Daly speak on Wednesday, with 5-Year supply also due.