T-Notes drifted lower for the majority of...>

US TSYS: T-Notes drifted lower for the majority of the overnight session, as the

regional equity markets & U.S. equity index futures edged higher, with a weak

10-Year JGB auction applying further pressure. The latest RBA MonPol decision

allowed a base to form in the space, for now, with the takeaways from the

meeting covered elsewhere.

- T-Notes -0-05 at 130-05, off worst levels, with bear steepening creeping in on

the back of the aforementioned JGB auction.

- Remember that liquidity will have been limited by the Chinese & HK holidays.

- Eurodollar futures 2.0-2.5 ticks lower thru the reds. The most notable flow

saw steady selling of EDZ9 overnight.

- Focus Tues moves to m'fing ISM & speeches from Fed's Evans, Clarida & Bowman.

- Also worth flagging that the NY Fed has reduced the size of overnight repo

operations to $75bn (back from the $100bn they were upsized to last week) after

undersubscription became evident in the last couple of ops.