T-Notes having a look through Tuesday's.....>

US TSYS: T-Notes having a look through Tuesday's high at the re-open, last

dealing +0-02 at 128-06+. Early Asia trade has seen Trump confirm his nomination

of Judy Shelton to the FOMC's Board of Governors (widely touted over the last

few months). He also nominated executive vice president & the director of

research at the St. Louis Fed Christopher Waller to the board (see ### POV:

TRUMP FED-PICK WALLER MAY HAVE DOVISH LEANINGS for more colour).

- Offshore matters supported the space on Tuesday, with BoE Governor Carney

sounding pessimistic, a Russian nuclear submarine accident and a downbeat

assessment of the G20 meeting from the Editor in Chief of China's Global Times

all lending support to Tsys. The 7-10 Year sector of the curve outperformed in

the cash space, with 10-Year yields closing back below 2.00%.

- Fed's Mester stuck to her hawkish leanings on Tuesday, noting that she needs

to see a further deterioration in data before considering lowering interest

rates, warning that "cutting rates at this juncture could reinforce negative

sentiment about a deterioration in the outlook even if this is not the baseline

view."