T-Notes draw support from the escalation....>

US TSYS: T-Notes draw support from the escalation in U.S.-Iranian tensions

evident over the weekend, including verbal jousting between the U.S.

administration and Iranian leaders (which some suggested pointed to potential

war crime threats from U.S. President Trump), Iran raising a red flag from a

major mosque in Qom, symbolising a severe battle, the Iraqi parliament voting to

expel U.S. troops from the country (Note this isn't a given. The resolution must

be signed by the country's, who resigned in recent weeks) and rockets falling in

Baghdad's green zone.

- Contract last +0-07 at 129-19+. Participation should rise owing to the return

of Japanese traders, which means that there will be cash Tsy trade during the

Asia-Pac timezone.

- Plenty to note on the repo/money market dynamic front in the comments from

Fed's Barkin & the release of the Fed's Dec meeting minutes back on Friday,

which has been covered in previous bullets/policy pieces. A reminder that the

m'fing ISM disappointed on Friday, while construction spending topped estimates,

and was subject to +ve revisions.