Contained overnight, albeit a touch.........>

US TSYS: Contained overnight, albeit a touch choppy on the back of the latest

chapter of Sino-U.S. trade communique, but the initial ltd optimism was unwound

on the back of a lack of a hard, +ve outcome. This came after Fed Chair Powell's

"glass more than half full" rhetoric added to the mid-cycle adj. theme re:

recent rate cuts. T-Notes +0-00+ at 129-17 last, yields little changed.

- Block flow o'night, with what looked to be a 10.0K USF0 156.00 put rolled into

a long 10.0K USG0 156.00/154.00 put spread. There was also a 10.0K screen buyer

of USF0 152.00 puts. Roll activity was also evident, driving volume in futures.

- Eurodollar futs virtually unch. thru reds. There was a block seller of 2.5K of

the 0EZ9 98.500/98.375 put spread.

- Monthly advance trade data & home sales on the docket Tues. We will also hear

from Fed's Kaplan & Brainard, with 2-Year FRN & conventional 5-Year supply due.

- On the repo front, the Fed's first batch of term repos covering year end was

nearly 2x oversubscribed on Monday, which resulted in the NY Fed boosting the

"aggregate operation Limit for the 42-day repo operation scheduled for 12/2/2019

from at least $15 billion to at least $25 billion."