T-Notes hold a tight 0-01+ range in early...>

US TSYS: T-Notes hold a tight 0-01+ range in early Asia trade this week, and

last sit +0-01 at 139-06, even with e-minis ticking higher to start the week. A

reminder that the contract will experience a shortened trading session on

Monday, with cash markets closed, owing to the observance of the Memorial Day

holiday.

- A quick recap of Friday's price action allows us to note that 20s'

outperformance continued as the curve flattened during a holiday shortened cash

session, with T-Notes finishing back from their intraday highs after bulls

failed to force a test of the recent resistance zone.

- Weekend news flow didn't throw up any particular curve balls, with Sino-U.S.

tensions and the situation surrounding Hong Kong headlining. Any headline flow

surrounding these matters is likely to dominate early this week.