T-Notes have managed a marginal extension...>

US TSYS: T-Notes have managed a marginal extension through Monday's high, with

yields 3.5-4.1bp lower after the extended weekend for cash Tsy traders.

- Monday's session saw equities hit lower, with worries over North Korean

missile construction, as well as U.S. trade policy re: auto tariffs & fighting

China's IP theft via export controls adding weight. Heavyweight Apple also

struggled on some negative brokerage remarks. This leant a bid to Tsy futures on

the day, although volume remained limited with the cash market closed. 

- We also heard from Fed's Daly, who noted that "the U.S. economy at full

employment with stable prices calls for a gradual normalization of monetary

policy." Daly went on to outline her data dependant stance, while noting that

she hasn't yet decided on whether she will vote for a December rate hike or not,

although she did stress that it is appropriate for the Fed to get back to

neutral.

- Fed's Brainard, Kashkari & Harker will all speak on Tuesday.

- The white & red Eurodollar contracts last trade unchanged to 1 tick higher.

- T-Notes last 118.14+, U.S. 10-Year cash Tsy yields last 3.147%.