T-Notes mildly lower on the Asia-Pac...>

US TSY/RECAP: T-Notes mildly lower on the Asia-Pac session, last at 125-11,

10-Year Yields last at 2.320%.

- Treasuries ended rangebound Monday higher on safe-haven bid/Middle East

worries from the weekend after Saudi Crown Prince made arrests and Iran aided

failed Houthi missile attack on Saudi land so Saudis would retaliate, said CNN. 

- NYMEX crude oil prices +2.9% to $57.25; earlier oil spiked, US$ declined and

gold rose. Traders awaited Hse Ways & Means panel tax plan news. 

- Tsys 2/10Y, 2/30Y, 2/5Y flatteners. Morning Tsy futures block buy: 3,885 Dec

10Y/Ultra at 134-17, 7:18am ET. MBS bid. US Eurodollar futures seller in front

end: 16,000 EDH8 at 98.323. 

- US swap spreads mostly tighter; 2way 5Y flow nr 2.05635%-2.06172; 2/5Y

steepener of $47.4K DVO1 and a $94.8K 2/3/5Y fly, belly receiving. 

- NY Fed Dudley to retire mid-2018; said "bit surprised by" 2017 inflation, "2%

inflation not a ceiling." Heavy high-grade corp bond issuance; 6part Apple. 

- Tsy blocks at 1:56pm, 1:58pm ET: buy of 5,000 TYZ at 125-12.5, and 5,000 buy

of TYZ at 125-13; both cross on bid.