It has been a calm start to the........>

US TSY/RECAP: It has been a calm start to the session for T-Notes, after the

swings seen late Monday.

- Tsys pared earlier losses late in the day as equities erased gains/traded

lower on back of U.S.-China trade worries, as BBG ran headlines noting that the

U.S. is planning tariffs on all remaining Chinese imports if Trump-Xi talks,

scheduled for next month, fail.

- Subsequent reports from Fox re: White House unaware of any new developments

pertaining to the BBG story saw the space off of highs into the close for

futures.

- Tsys had extended overnight lows into early NY trade amid cautious risk-on

move w/equities rebounding after last week's rout. Early driver came out of

Germany w/reports that Chancellor Angela Merkel will step down as head of the

CDU, Bunds sold off w/Tsys in tow. EZ Sovereign spds narrowed significantly.

- The latest round of PCE data was largely ignored by the space, with the U.S.

docket looking thin Tuesday ahead of a busy second half of the week.

- T-Notes last 118.31, U.S. 10-Year cash Tsy yields closed at 3.085%.