Quiet re-open for the space, U.S.......>

US TSY/RECAP: Quiet re-open for the space, U.S. equity index futures modest bid

early on. T-Notes finished Monday back from best levels after an NY afternoon

rally, limited docket apparent with no immediate reaction to print in a holiday

thinned session. Equity bid aided by positive sounding headlines on U.S./China

trade (WSJ article over weekend - "fleshing out" deal, Trump tweets & China

language). USD/JPY still closed sub-Y110. FI Volumes very light (Japan out most

of week for various year-end holidays). Light, two-way flow was observed,

program selling in short end post LIBOR set, year-end buying intermediates.

- Focus falls on Friday's NFP report, with the manufacturing ISM survey due

Thursday. Elsewhere worth noting that Fed Chair Powell & Bostic are set to speak

Friday. Focus on the ongoing gov't shutdown, President Trump has invited a

bipartisan group of congressional leaders to the White House on Wednesday.

- T-Notes last 121.28+, U.S. 10-Year cash Tsy yields closed at 2.684%.