T-Notes sit just shy of their overnight.....>

US TSYS: T-Notes sit just shy of their overnight high after edging away from the

opening levels and Monday's lows as the major Asia-Pacific equity indices

operate back from session highs, with regional traders choosing to fade Monday's

sell-off.

- The ongoing Brexit impasse, a guarded RBA & some focus on a local South Korean

report noting that a South Korean official said that "North Korea could be on

the brink of a missile launch from a pad on its western coast" on Monday have

generated support for the space.

- Also worth reminding that a FV block trade in late NY hours Monday helped

pressure Tsys ahead of the close, so the move may represent some unwind of that.

- The belly of the curve has outperformed in Asian hours after struggling

Monday. Yields trade 1.9-3.3bp lower across the curve at writing, with the long

end lagging the move.

- Recent flow has seen 10.0K of the TYK9 123.00 puts given at 0-10.

- Eurodollar futures trade unchanged to 2.5 ticks higher through the reds.

- T-Notes last 123.25+, U.S. 10-Year cash Tsy yields last 2.471%.