Core FI markets were happy to hold in.......>

US TSYS: Core FI markets were happy to hold in familiar territory overnight,

despite the continued uptick in global equities, with e-mini S&P futures

printing back above 3,000, in the first foray above that level since early

March.

- T-Notes sit -0-04 at 139-01, a little off worst levels, with yields 1.0-1.8bp

cheaper across the curve.

- Participants will have to weigh up the current risk positive gyrations, along

with the impact of the incoming Tsy coupon supply and Sino-U.S. tensions as U.S.

participants return to market.

- In addition to that, and possibly adding another layer of confusion, month-end

extensions are seen as larger than average, while the rebalancing models that we

have seen point to money rolling out of equities and into bonds.

- Eurodollar futures sit unchanged to 1.5 ticks lower through the reds.

- Conference board confidence metrics, regional Fed activity prints, house price

indices and new home sales data are all due Tuesday. Elsewhere, we will hear

from Fed's Kashkari and see the latest round of 2-Year supply.