T-Note futures continue to operate...>

US TSY FUTURES: T-Note futures continue to operate at the bottom of a tight

range at writing. Little in the way of notable movement in Tsy futures, with

cash markets closed until London hours. Market had little reaction to chatter of

Trump wanting to remove Fed Chair Powell over the weekend (subsequently played

down by U.S. admin) & U.S. Tsy Sec Mnuchin "liquidity checking" the largest U.S.

banks via phone calls. Gov't shutdown saga continues.

- Weekend rhetoric out of China re: U.S. trade matters, pointed to further

positive developments, in spite of cautious comments from U.S. trade hawk Peter

Navarro to the Nikkei late on Friday.

- U.S. equity index futures trade just off of best levels, adding pressure to

the Tsy space.

- Eurodollar strip trading higher, whites & reds last 1.0 to 4.0 ticks higher on

the day, with most contracts off highs.

- 2-Year supply due later today, with 5- & 7-Year auctions also due during the

week.

- T-Notes last 121.01, U.S. Year cash Tsy yields closed at 2.790%.