Following a small move higher in....>

US TSYS SUMMARY: Following a small move higher in UST futures yesterday, cash

USTs gapped higher at the open before continuing their move higher on the back

of a Globe and Mail story that suggested the US is ramping up extradition

proceedings for the Huawei CFO. With Sino-US trade negotiations ongoing, there

are concerns that the extradition could strain relations between the two

superpowers and derail the trade talks.

- 2y UST yields hit a low of 2.5765% just as the London session was beginning

but have since retraced to around 2.5950%.

- The curve has flattened with 10y USTs seeing yields fall 2.7bp to 2.757% at

the time of writing.

- With the ongoing government shutdown, the data calendar is pretty sparse today

with existing home sales the highlight. We have also entered into the Fed's

blackout period ahead of the Jan30 meeting so there will be no Fed speeches this

week.