T-Notes had a brief look below Monday's.....>

US TSYS: T-Notes had a brief look below Monday's low on the back of a buoyant

start to Tuesday's session for Asian equities, although the move lacked follow

through, with Chinese stocks undperforming, limiting risk appetite.

- This comes after Tsys traded weaker on Monday, going out near the lows as the

curve steepened modestly, with roll activity once again dominating volume in

futures. Risk-on trade was apparent on Monday as equities benefitted from the

announcement of a U.S. trade agreement with Mexico, with the U.S. now moving on

to talks with Canada in the hope of a tri-lateral agreement based upon the

U.S.-Mexico deal (with this bi-lateral agreement acting as a kick back).

- The latest 2-Year Note auction came in on the screws, with the participation

breakdown largely in line with recent averages.

- Focus on Tuesday turns to 5-Year Note supply.

- T-Notes last 120.11, U.S. 10-Year cash Tsy yields last at 2.846%.