Early focus fell on the indefinite..........>

US TSYS: Early focus fell on the indefinite suspension of U.S. tariffs on

Mexico, announced late Friday by President Trump. Risk appetite benefited, even

as questions re: the substance of the deal remain, as BBG sources in Mexico

noted that there was no side agreement re: Trump's later references to

agricultural sales across the southern border, while some U.S. press outlets

have suggested that the deal contains little in the way of fresh agreements. A

wider than exp. headline Chinese trade surplus briefly pressured Tsys, but the

impact was short lived. Elsewhere, the weekend saw Tsy Sec Mnuchiun play down

any chances in advances re: trade matters ahead of a meeting between Xi & Trump

at the G20 later this month. T-Notes have ticked away from early lows & last

trade -0-11+ at 126-28+. Cash Tsy yields are 3.2bp to 4.9bp higher across the

curve, with a degree of bear flattening apparent.

- Eurodollar contracts are dealing 2.0-6.0 ticks lower through the reds. The

EDN9 98.000/98.125 call spread saw 20.0K blocked at 0.030, suggestions were this

was driven by a buyer. ~7.0K of the strategy crossed on screen shortly after.

- The local U.S. docket is very limited today, with the Fed now in blackout.