It has been a limited session for Tsys......>

US TSYS: It has been a limited session for Tsys after the space went out near

best levels on Friday. Tsys have traded in a resilient manner in the 1st session

of the week, in spite of a positive session for the major Asia-Pacific indices.

- Fed Chair Powell headlined on Friday, in summary Powell noted that the economy

is robust with little concern re: overheating, gradual hikes remain appropriate

if growth continues, with inflation stable/little risk of accelerating above 2%.

Markets inferred a dovish tinge from Powell's remarks re: inflation.

- Elsewhere on Friday Fed's Mester stuck to her hawkish playbook noting that the

case for raising rates is "pretty compelling," Fed's Kaplan repeated the stance

he indicated earlier in the week, Fed's Bullard remained more cautious than most

Fed Presidents, reiterating that he wouldn't vote for additional hikes this year

(he is a non-voter in '18), finally Fed's Bostic noted that he is watching to

see if inflation accelerates.

- Focus this week falls on Q2 GDP data, Jul PCE & Chicago PMI, as well as U.S.

Tsy supply, which gets underway today, as 2-Year paper comes to market.

- T-Notes last at 120.19+, U.S. 10-Year cash Tsy yields last at 2.813%.