T-Notes last -0-02+ at 129-15+, with the....>

US TSYS: T-Notes last -0-02+ at 129-15+, with the Tsy curve steepening as yields

print 0.6-2.4bp higher across the curve at writing. The early FT headlines re:

"U.S. is considering dropping some tariffs on China" (including those hit with

tariffs in Sep) will grab focus as European traders file in, but the story was a

little more caveated, pointing to the U.S. looking for broader focus on some of

the more structural issues re: the trade war. Also, one of the sources that

contributed to the story noted that it is unclear if Trump would sign off on

such a deal. Flow-wise, we saw a 20.0K block buyer of the FVF0 118.75/118.25 1x2

put spread, there was also a 10.0K screen buyer of the FVZ9 119.50 calls and a

smaller buyer of the TYZ9 128.00 puts.

- Eurodollar futures are unchanged to 0.5 tick lower through the reds. Worth

flagging a 40.0K block seller of the 0EZ9 98.50/98.25/98.00 put ladder, which

resulted in some hedging flow through the reds in the futures space.

- Non-m'fing ISM headlines the local docket Tuesday, with Services/Composite

PMIs also due, as well as monthly trade data. Fed's Barkin, Kaplan & Kashkari

are all due to speak Tuesday, with 3-Year Notes up on the issuance slate.