T-Notes -0-02+ at 127-14+, with the curve...>

US TSYS: T-Notes -0-02+ at 127-14+, with the curve twist flattening marginally

in what was a very contained Asia session. The slight twist flattening was

likely aided by Fed voter Rosengren's preference to leave rates unch., disclosed

in the final round of last week's Fed expectation m'ment exercise.

- Weekend news may have provided some light pressure after Xinhua noted that

several Chinese firms want to buy U.S. ag products & have applied for exemptions

from the tariffs imposed by Beijing. It is worth flagging that the report also

cited Trump's promise to suspend the imposition of new tariffs on Chinese goods

& allow U.S. firms to sell products to "relevant Chinese firms", an apparent

reference to Huawei, per SCMP. This underscores the conditionality inherent in

the trade talks, limiting any follow through in mkts. WH Econ advisor Kudlow &

U.S. Tsy Sec Mnuchin are set to meet with U.S. tech firms today. Some have

suggested that they will discuss a resumption of sales to Huawei.

- The highlight on the flow side saw 5.0K of the USU9 153.00/151.00 put spread

bought on block.

- Eurodollar futures trade 2.0-2.5 ticks lower through the reds.