T-Notes unwound their early, modest.........>

US TSYS: T-Notes unwound their early, modest Asia-Pac losses, +0-01 at 128-09

last, with the curve twist flattening at the margin, although activity remains

muted.

- Participants perhaps chose to focus on the weekend comments out of North

Korea, continuing the run of recent frosty relations with the U.S., as well as

Chinese President Xi being "gravely concerned over the negative words and

actions of the U.S. on issues related to Taiwan, Hong Kong, Xinjiang, and

Tibet," which interfered with China's internal affairs and damaged its

interests. As a result, they looked through the latest round of import tariff

reduction headlines out of China.

- Only flow of note saw 10.0K of the TYF0 129.00 calls trade at 0-02 across

several clips.

- Eurodollars unchanged through the reds.

- 1-week FX forwards started to bake in higher USD funding costs at year end,

however, x-ccy basis was subdued.

- Prelim durable & capital goods data headlines the local docket today.