T-Notes trade at session highs, albeit in...>

US TSYS: T-Notes trade at session highs, albeit in a tight range, supported by

dovish rhetoric from Fed Vice-Chair Clarida, covering both policy trajectory and

the balance sheet run-off, with the latest uptick coming on the back of a Fox

interview with U.S. President Trump, who stated that "if we can't make a deal

with Congress (re: the border wall), we'll probably declare a national

emergency." These factors outweighed optimism surrounding a top tier U.S.-China

trade summit later this month, although WSJ sources noted that the summit may be

pushed back owing to the U.S> gov't shutdown.

- Yields trade 1.6-2.0bp lower across the curve at writing.

- White and red Eurodollar contracts trade 0.5-1.5 ticks higher at writing.

- U.S. CPI headlines the domestic docket today.

- T-Notes last 121.24+, U.S. 10-Year cash Tsy yields last 2.722%.