Monday provided a generally quiet......>

US TSY/RECAP: Monday provided a generally quiet start to the first full trading

week of 2019. Risk-on theme was observed for the majority of the session, Tsys

reversed early bid/traded lower as equities rallied on back of a strong ISM

non-factory order sub-metric (in spite of the weaker than exp. headline). Curve

bear flattened on the day.

- Equity bid was tempered late in the day, after US Pres Trump announced that he

would address nation late Tuesday (2100ET) re: national/border security.

- Fed's Bostic struck a dovish tone as he highlighted that he favours raising

rates only once this year (prev. 2) N.B. Bostic is not a voter in 2019.

- Flow included mild deal-tied selling, pre-auction short sets ahead Tue's $38B

3-Year note auction; prop/fast-money a/c's two-way in short end, real-money &

levered a/c selling 5s & 10s, two-way option-tied hedging on heavy volume;

limited positioning ahead of Wed's Dec FOMC minutes release.

- T-Notes last 121.30+, U.S. 10-Year cash Tsy yield closed at 2.696%.