T-Notes last +0-01+ at 127-12+ after the....>

US TSYS: T-Notes last +0-01+ at 127-12+ after the contract finish little changed

Tuesday, despite having a look outside of both the upper & lower bounds of

Monday's range. Cash trade saw yields 0.2-1.2bp lower, with some marginal

underperformance in the belly. Trump struck an aggressive tone re: China & the

Fed on Twitter, before dialling back a little on China. Elsewhere, strong

consumer conf. data weighed after core Y/Y PCE modestly missed exp.

- Late flow on Tuesday saw a ~18.4K block of EDM0Z0 cross at -0.070, in what

appeared to be a steepener play. Eurodollar option activity saw 50.0K of the

EDU9 97.75 puts blocked vs. EDU9 futures.

- There has been little reaction in the space to a Washington Post report which

has suggested that "the Trump admin is set to announce later this week that it

will once again waive five different nuclear-related sanctions on Iran."

- Focus on Wednesday falls on the FOMC's MonPol decision, with most looking for

Powell and co. to conduct a 25bp "insurance" rate cut. Elsewhere the quarterly

Tsy refunding announcement will be eyed, as will Chinese PMI data & the

U.S.-China trade talks.