T-Notes hover around unchanged levels,......>

US TSYS: T-Notes hover around unchanged levels, last -0-01 at 131-20, with

yields back from extremes to print 1.4-1.8bp higher across the curve as we type.

The "sell China" mantra evident since the re-open of Chinese onshore markets

this morning, coupled with the PBoC's decision to cut the rates applied to its

7- & 14-day reverse repos allowed the space to recover from lows after a choppy

opening couple of hours. CNY weakness was a product of these matters, with both

USD/CNY & USD/CNH clearing 7.00. Please refer to earlier bullets/commentary re:

Chinese policymakers' efforts to promote confidence, which reportedly included

verbal circulars banning the short selling of domestic equites during Monday's

session (unclear how long this will last).

- Overnight seemingly saw some position squaring in H0 options contracts,

including blocks in US 160.00 calls, a TY 131.00/130.25/130.00/129.75 put

structure and both the TY 130.50 & TY 130.00 calls.

- Eurodollar futures print 0.5-1.5 tick lower through the reds.

- M'fing ISM data headlines the local docket today, with Fed's Bostic due late

in NY hours and the Democratic Iowa caucuses also on the slate.