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

US TSYS: T-Notes have stuck to a tight range, last dealing at 123.29+, while

U.S. 10-Year cash Tsy yields last trade at 2.457%, with yields little changed

across the curve. A source has highlighted interest to put on flatteners via

futures in Asia hours (TY vs. US & TY vs. WN).

- The latest round of Chinese trade data had little, if any, impact on the

space.

- As a reminder, Tuesday saw Fed Governor Quarles note that he doesn't "share

the concern, that some have, that if we're at 1.8% inflation for a significant

period of time, that this is a problem that needs to be fixed. From my point of

view, 1.8 is 2." He "would not undergo heroic efforts, including re-thinking our

monetary policy framework, or significant monetary policy stimulus, in order to

edge 1.8% up to 2%." But, he noted that if the inflation rate sank to 1%, "then

you would have a different issue."

- Focus today moves to an address from Fed's Brainard, in addition to the latest

round of 10-Year supply.

- Eurodollar futures trade unchanged-2.5 ticks lower through the reds.