T-Notes sit just shy of their late NY.......>

US TSYS: T-Notes sit just shy of their late NY high, +0-04 at 139-02+, after a

sharp sell-off in equities supported the space, although the curve finished off

its intraday flats.

- Cautious comments from investor Druckenmiller and U.S. legislation being drawn

up re: potential sanctions on China weighed on equities and provided support for

Tsys in the wake of a strong round of 10-Year supply. The 10-Year auction

stopped through WI by over 1.0bp, with dealer takedown sliding as indirect

participation picked up. The cover ratio generated at auction was the highest

seen for this tenor in ~2 years, shaking off worries surrounding the increased

size of supply ahead of next week's 20-Year auction.

- Elsewhere, CPI data was on the weak side, while Fedspeak generally continued

to push back against the idea of negative interest rates, despite President

trump expressing his preference for such a move via Twitter.

- Focus Wednesday falls on an address from Fed Chair Powell.