Risk assets have taken a hit in early.......>

US TSYS: Risk assets have taken a hit in early dealing as the US-China trade

issue dominates traders' thoughts, lending some support to fixed income,

although liquidity is diminished with China & HK out on holiday today.

- 7-Year paper has experienced some modest outperformance.

- Back on Friday Fed non-voter Kaplan stated that he only sees three hikes in

total in 2018, despite a median of four dots from FOMC (but he remains open

minded re: a fourth hike); while outgoing NY Fed Pres Dudley came off more

hawkish stating that the Fed needs to keep a check on growing inflation.

- Focus this week will fall on Fedspeak, with a limited US economic docket

apparent, Fed's Powell, Dudley, Bostic, Williams & Bullard are all set to speak

during the week (Dudley, Williams & Bostic all speak on Monday).

- T-Notes last at 119.22+, 10-Year Tsy yields last at 2.908%.