T-Notes have stuck to a tight range.........>

US TSYS: T-Notes have stuck to a tight range during Asia-Pacific dealing. A

report suggesting that Canada is ready to make concessions re: dairy for NAFTA

had little effect on the space.

- Tsys also failed to track the uptick in Aussie paper on the back of AU

domestic funding/mortgage rate issues late in the session (as you would expect).

- The latest 5-Year Note auction drew a modest 0.1bp tail, with dealer

participation a little lower than the recent average, as indirect participation

held up, although the cover ratio slid to the lowest level observed since April.

- On Tuesday Fed's Kashkari (non-voter) offered little to no fresh insight,

while Richard Clarida's appointment as FOMC Vice-Chair passed through the

Senate.

- The Eurodollar strip is unch. to 1 tick higher in the whites and reds, 1.5

ticks higher further out.

- U.S. GDP & 7-Year supply headline on Wednesday, with 2-Year FRN supply also on

the slate.

- T-Notes last 120.07, U.S. 10-Year cash Tsy yields last at 2.868%.