It was a headline light Asia-Pacific........>

US TSYS: It was a headline light Asia-Pacific session, with Hong Kong observing

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

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

Vice Commerce Min who suggested that it is hard to progress in the U.S. trade

talks with a knife to the neck during Asia-Pacific hours on Tuesday, although

China left the door open to further discussions if the U.S. decides to be more

sincere, highlighting upsides for the U.S. in such an instance.

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

conventional 5-Year & 2-Year FRN supply due 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 118.14+, U.S. 10-Year cash Tsy yields last 3.096%.