T-Notes operate at/around session lows at...>

US TSYS: T-Notes operate at/around session lows at writing, with risk appetite

experiencing a modest recovery overnight as USD/JPY topped Y112.00.

- BBG reports on comments from Japanese FinMin Aso, who stated that the Japanese

& U.S. FX chiefs will discuss currency matters, likely aided the move, alongside

an uptick in the Nikkei 225.

- The belly of the curve has experienced some modest underperformance in cash

trade, following yesterday's slight outperformance.

- The Eurodollar strip trades unchanged to a tick softer last. The most notable

flow in the space thus far has been EDZ8 4.5K given at 97.305 & EDZ9 paper paid

96.780 on 10.0K.

- The U.S. Tsy's semi-annual FX report is keenly awaited, with the Saudi

journalist situation in the Kingdom's Turkish consulate still under scrutiny

(reports point to a botched interrogation leading to his death).

- Fed's Daly speaks late Tuesday.

- T-Notes last 118.03+, U.S. 10-Year cash Tsy yields last 3.171%.