Monday provided a relatively quiet.....>

US TSY/RECAP: Monday provided a relatively quiet trading session for Tsys, with

two-way positioning flow noted and better selling on light volume ahead of the

Independence Day holiday (noon pit close on Tuesday, followed by a full closure

on Wednesday).

- Tsys unwound the early risk-off support and gradually extended to fresh

session lows following the ISM manufacturing PMI (although the breakdown was

softer than the headline).

- There was a brief and a modest bounce off lows post Pres Trump comments re:

trade, before closing the session at/around worst levels.

- Focus on FOMC June meeting minutes, NFP & China tariff deadline later in the

week.

- There was decent option volume on mostly small delta trades, put buying/rate

hike insurance for Mar '20. 

- The Eurodollar strip was holding mildly lower by the close, near the low end

in a narrow session range on light volume.

- T-Notes last at 120.00+, US 10-Year Tsy yield closed at 2.871%.