T-Notes hover around best levels after......>

US TSYS: T-Notes hover around best levels after moving higher in Asia-Pac trade,

with the 10-Year yield below its 200-DMA for the first time since Nov '17.

Yields edged marginally higher at the re-open before the aforementioned

technical break triggered bull flattening of the curve, with notable volume

trading in T-Notes on the move. 2s5s & 3s5s spreads remain inverted, while the

2s10s spread sits at the flattest level observed since '07 after Monday's choppy

session saw long end yields unwind their early trade "truce" gains.

- BBG ran comments from Fed Chair Powell. "FOMC has made a great deal of

progress towards its mission goals" although he has acknowledged "long-term

challenges in to an otherwise strong economy." That being said, Powell noted

that "wage gains & consumer confidence support robust spending."

- The Eurodollar strip trades flatter on the day, with the whites and reds 0.5

to 4.5 ticks higher at writing, on decent enough volume for this time of day.

- A speech from Fed's Williams provides the highlight on the docket Tuesday,

ahead of market closure on Wednesday.

- T-Notes last 119.29+, U.S. 10-Year cash Tsy yields last at 2.946%.