It has been a relatively headline light.....>

US TSYS: It has been a relatively headline light session, with Hong Kong

observing a market holiday. T-Notes have softened a touch, with the contract

testing Monday's lows at writing. The only headline of note has come from

China's Vice Commerce Minister who suggested that China is open to talks with

the U.S. re: trade, although the remainder of his address maintained the broader

themes of recent policymaker rhetoric.

- The belly of the cash curve has experienced some modest underperformance, with

conventional 5-Year & 2-Year FRN supply due later today. This comes on the heels

of a 2-Year auction which saw the cover ratio slide, as the auction tailed by

0.4bp. Dealer participation ticked higher, moving above the recent auction

average.

- The Eurodollar strip trades 0.5 to 2.0 ticks lower last.

- Wednesday's Fed decision provides the highlight of the docket this week, with

a hike fully priced in focus will turn to the accompanying economic assessment

and rhetoric employed by Chair Powell in his press conference.

- T-Notes last 118.15, U.S. 10-Year cash Tsy yields last 3.094%.