Much the way it started the session....>

US TSY FLOWS: Much the way it started the session -- new week kicked off with

risk-on tone w/DC sending positive signals over US/China trade over weekend,

equities making new all-time highs (ESZ9 around 3083.75). Rates traded weaker,

hitting session lows ahead midday albeit amid ight volume w/Japan out for one

day holiday, TYZ <965k by the bell.

- MNI EXCLUSIVE: China Won't Cede On Key Trade Issues: Advisors saw brief period

of short cover/risk-on unwinding, but but momentum from higher equities held

sway.

- Large Block sale 20,000 TYZ at 129-21.5 helped trigger mid-morning gap move

lower, corporate deal-tied hedging added to pressure (over $11B to price Mon)

- Yld curves bear steepening, w/3M10Y making new 8 month high (27.243).

- The 2-Yr yield is up 3.6bps at 1.5882%, 5-Yr is up 5.6bps at 1.5982%, 10-Yr is

up 7.4bps at 1.784%, and 30-Yr is up 8.2bps at 2.2717%.