T-Notes operate around session lows,........>

US TSYS: T-Notes operate around session lows, although they have stuck to a 2+

tick range, while the belly of the cash curve has experienced some modest

underperformance.

- The space has effectively traded as a function of NAFTA headlines, moving to

fresh lows as a trilateral deal is seemingly awaiting the formal rubber-stamping

approval.

- Back on Friday Federal Reserve Bank of New York President John Williams again

called for continued gradual interest rate increases to sustain the economic

expansion but warned that the Fed's policy actions and communications are

evolving as it closes in on its dual mandate of maximum employment and price

stability.

- Focus today falls on the manufacturing PMI & ISM surveys, as well as addresses

from Fed's Bostic, Kashkari & Rosengren.

- T-Notes last 118.21+, U.S. 10-Year cash Tsy yields last 3.072%.