Monday provided a quiet start to the...>

US TSY/RECAP: Monday provided a quiet start to the week for the space as T-Notes

held below Friday's settlement levels on decent volume, with the belly of the

curve experiencing some modest outperformance in cash trade. The space had a

fairly limited reaction to a miss in headline retail sales data, garnering a

modest bid. Deal-tied rate-locks provided some weight, >$7bn Conagra 7-tranche

issuance was of note, while there are expectations for further issuance from

financials as they exit earnings blackout.

- Carry-over 2-way flow was observed from fast-money a/c's in the short end,

while prop a/c's were selling intermediates, with light option volume apparent.

- The Eurodollar strip went out slightly lower with a parallel shift seen across

the strip on light volume.

- The U.S. Tsys semi-annual FX report is keenly awaited, with the Saudi

journalist situation in the Kingdom's Turkish consulate still under scrutiny

(reports point to a botched interrogation leading to his death).

- Fed's Daly speaks late Tuesday.

- T-Notes last 118.07+, U.S. 10-Year cash Tsy yields closed at 3.156%.