T-Notes have ground higher in early.........>

US TSYS: T-Notes have ground higher in early dealing this week, edging closer to

settlement levels, as risk off flows surrounding U.S.-Saudi tensions, Brexit

matters and the Italian budget situation leant support.

- The cash curve has undergone some modest flattening, with the belly slightly

outperforming.

- Focus today will fall on U.S. retail sales data, which provides the highlight

of the U.S. economic data releases this week. Elsewhere the minutes from the

latest FOMC MonPol decision are due Wednesday, with Fedspeak from Daly,

Brainard, Bullard, Quarles, Bostic & Kaplan also due over the next 5 days. On

the issuance front the short-end dominates, ahead of the latest 30-Year TIPS

auction Thursday.

- The Eurodollar strip trades unchanged to 2.0 ticks lower in early dealing this

week, in what has been a limited session. The highlight of the overnight flow

was 0EM9 96.625/96.500/96.375 put ladder blocked at -0.005 on 3.0K, sources

suggest it was a buyer.

- T-Notes last 118.08+, U.S. 10-Year cash Tsy yields last 3.150%.