T-Notes closed in the upper half of a.......>

US TSYS: T-Notes closed in the upper half of a tight range on Monday. A lack of

headline catalysts & the holiday-shortened week ltd activity, with the contract

recovering after a couple of looks below Friday's low. Marginally softer U.S.

equities, owing to fallout from Goldman Sachs & Citi earnings, coupled with a

softer tone in the BoC biz outlook survey, issued across the border, helped

support the space. Yields across the curve finished unch.-1.1bp lower.

- Fed's Evans made several addresses, first pointing to stronger U.S. econ data.

The '19 voter then told the WSJ that he has "the exp. that towards the fall of

'20 we have 1 rate increase & 1 more rate increase the following year." He went

on to describe current MonPol settings as "about neutral." Evans then noted that

while it isn't his baseline exp., "inflation running too low is justification

for deciding our setting for MonPol is actually restrictive & we need to make an

adjustment downwards in the funds rate. If we were facing 1.5% core inflation"

that could make the case to lower short-term rates."

- Fed's Rosengren will speak in Asia-Pacific hours.

- T-Notes last 123.04+, U.S. 10-Year cash Tsy yields closed at 2.554%.