Monday provided a relatively quiet.....>

US TSY/RECAP: Monday provided a relatively quiet start to the shortened Easter

holiday week, with limited economic data apparent.

- The space absorbed $51ln worth of Tsy 3M bills, $45bln worth of Tsy 6M bills

and $30bln worth of Tsy 2Y notes. The 2-Year note auction exhibited a slight

tail, as dealer takedown ticked higher.

- Tsys were driven by the broader risk tone in relation to positive overnight

headlines re: trade wars, with reports suggesting that the US & China were

looking for a solution, while South Korea came to an agreement with the US.

- Tsys were under pressure as equities surged, although flow was two-way, with

carry-over bank and real money buying the long end into midday, which was

followed by corporate deal and auction-tied hedging/unwinds, with modest option

tied flow also noted. Swap spreads were steady/mixed, paying was noted in 2s, 5s

and 6s, with the belly paid in the 3Y-5Y-7Y Fly.

- The space shrugged off a slightly more cautious batch of comments from FOMC

voting hawk Mester, with Fed Governor Quarles due up in Asia.

- T-Notes last 120.11+, US 10-Year yields last 2.852%.