T-Notes extend on their late uptick after...>

US TSYS: T-Notes extend on their late uptick after U.S. TR Lighthizer

highlighted that China backtracked on some core tenets of the proposed trade

deal just ahead of the futures close. Lighthizer called the move an "erosion of

commitments;" while Tsy Sec Mnuchin acknowledged a "big change in direction".

Lighthizer also noted that Trump's proposed tariff increase will take effect at

00:01 ET on Friday, with an exclusion process, Mnuchin also noted that the U.S.

would reconsider the duties if the talks get back on track. Lighthizer confirmed

that the Chinese delegation is expected to arrive on Thursday.

- CNBC sources had reported that "Chinese VP Liu He is expected to join a

delegation in the United States this week, a potentially positive sign for a

trade agreement between the U.S. and China even as the Trump administration says

it will hike tariffs on Chinese goods." Mnuchin & Lighthizer noted that they

hadn't spoke with Liu in the last 24 hours, but confirmed his attendance.

- Markets had regained some poise after Monday's volatile Asia-Pacific session.

- Fed's Harker & Evans offered little new in their respective addresses Monday.

- T-Notes last 123.28, U.S. 10-Year cash Tsy yields closed at 2.469%.