Risk-on tone starts new wk, rates...>

US TSYS SUMMARY: Risk-on tone starts new wk, rates lower/curves bear flattening,

equities higher (Russell 2k closed near all-time highs last Fri); core and sov

spds tighter (voter support for Italian "League" has grown since Fri), strong

Australian retail sales ahead RBA meet early Tue. Prosaic U.S. data releases,

Fed in blackout -- back to watching headlines re trade-war negotiations and

tit-for-tat tariffs between U.S. and long standing allies.

- USD index weaker (DXY -.385, 93.771; US$ vs. Yen -0.04, 109.50); stocks up

(emini +8.0, 2741.75); gold up (XAU +2.05, 1295.78); West Texas crude off (WTI

-0.44 to 65.37).

- Asia, Tsys traded off after near steady open, little in the way of fundamental

catalysts noted. Sideways trade through London cross. London, two-way trade on

moderate volume, real$ sellers 7s, 10s, bank buying 30s near lows.

- Swaps, spds mixed, 2s9s and 3s5s flatteners, 2-way in 5s. Eurodollar futures

weaker/midrange, gradual pricing 3 more hikes in '18 after SF Fed Pres Williams

hawkish message in Reuters interview late Fri. Tsy cash/ylds: 2Y 100-00.6

(2.488%), 5Y 99-30.25 (2.760%), 10Y 99-22.5 (2.908%), 30Y 101-12.5 (3.052%).