It was a quiet start to the week for...>

US TSY/RECAP: It was a quiet start to the week for the space, with T-Notes going

out mid-range after trading marginally higher for the majority of the U.S.

session, while the cash curve experienced modest steepening after some early

bull flattening.

- There was no notable U.S. data releases or speakers. That left implied vol

rather stable on the inside range day in Tsys, correlation to equities not a

factor as rates pared gains even as equities traded negative (traders cited

Google for weighing on FANG index, Citi downgrade of HSBC weighed on financial

shares).

- Decent early futures volume really petered out after London went home.

- Some Tsy volume associated w/option hedges vs. soon to expire Nov options.

- Heavy front-end Eurodollar futures buying was observed, EDZ8 +0.030 to 97.26

(>310k), EDH9 +0.025 to 97.09 (>215k); 3M FRA/OIS slipped tighter on the move.

- Focus Tuesday turns to 2-Year supply, as well as Fedspeak from Bostic, Kaplan

& Kashkari.

- T-Notes last 117.31+, U.S. 10-Year cash Tsy yields closed at 3.198%.