T-Notes continue to hold shy of.............>

US TSYS: T-Notes continue to hold shy of settlement levels, but trade back from

session lows, with the second half of the Asia-Pac session muted, as focus

remains on Friday's news flow. Cash curve bear flattened a touch in early trade

this week, before U.S. equity index futures moved back from best levels, with

yields creeping into negative territory as a result. Gov't shutdown ongoing.

Trump's "concession" seems to be building a border wall out of steel, as opposed

to concrete. Eurodollar strip continues to hold lower, with the whites and reds

operating off session lows, on solid volumes for this time of day. Whites

-0.5-2.0 ticks, reds -2.5-3.0 ticks, greens -2.5-3.0 ticks. Modest stepeener

plays noted in spreads early on.

- Today sees a 2-day vice-min trade summit between the U.S. & China get underway

& the release of the ISM non-m'fing survey. Weds brings the FOMC meeting minutes

from the Dec MonPol decision, with Fed Chair Powell due to speak Thurs,

headlining a smattering of Fedspeak due this week. Mkt will also have to digest

a cumulative $78bn worth of 3-, 10- & 30-Year supply during the next few days.

- T-Notes last 122.06, U.S. 10-Year cash Tsy yields last at 2.669%.