T-Notes have lacked any real traction.......>

US TSYS: T-Notes have lacked any real traction overnight, sticking to a tight

range. The space initially garnered some support from broader, modest, risk-off

flows, punctuated by U.S. President Trump telling the WSJ that he puts chances

of a bi-partisan deal to avert another gov't shutdown in 3 weeks time at 50/50.

The WSJ piece also noted that Trump is open to declaring a national emergency to

get the wall built, once again, nothing new, but the idea is still there. 

- A move higher for the Chinese yuan/Chinese stocks (Chinese equity strength has

faded) then limited the early risk-off flows, with the USD continuing to

underperform in the FX space after its move lower Friday.

- The cash curve sits a touch flatter at writing, with U.S. equity index futures

a little lower on the day. Focus Monday falls on 2- & 5-Year note supply, with

scope for the Tsy to reveal its forecasts for its end-quarter cash balance. Prep

talks for the high level Sino-U.S. trade summit also get underway.

- Eurodollar futures trade unchanged to 1.0 tick higher across the whites and

reds. 

- T-Notes last 121.14+, U.S. 10-Year cash Tsy yields last 2.740%.