Little in the way of early reaction to......>

US TSYS: Little in the way of early reaction to BBG source reports suggesting

"Trump Said to Want Trade Deal With China to Boost Stock Market." This comes

after Tsys finished Tuesday at session lows, with T-Notes sticking to a tight

range, and the curve running flatter.

- Soft 3-Year auction, saw 10th straight tail, with indirect participation

falling and dealer & direct participation ticking up, as well as a multi-year

low for the cover ratio. Auction was largely ignored.

- Several headlines came out after US, China negotiators met for the second day

straight summarising that talks were going well and that they had narrowed

differences on trade. The two sides are still not ready to strike a deal, with

talks continuing Wednesday.

- Focus on Trump's speech at 21:00 ET, although he isn't expected to use a state

of emergency to force through border wall funding. Elsewhere, the Dec FOMC

meeting minutes will hit on Wednesday, along with 10-Year supply. Fedspeak comes

from Bostic, Rosengren & Evans.

- T-Notes last 121.21, U.S. 10-Year cash Tsy yields closed at 2.728%.