The big theme of Tuesday is curve...>

US TSYS SUMMARY: The big theme of Tuesday is curve flattening and inversion,

with the long end of the curve outperforming.

- The Mar 19 T-Note future is up 7/32 at 119-260, having traded in a range of

119-220 to 119-315. 

- The curve is flattening: The 2-Yr yield is down 0.2bps at 2.8192%, 5-Yr is

down 0.2bps at 2.8157%, 10-Yr is down 1.3bps at 2.9569%, and 30-Yr is down

2.7bps at 3.2261%.

- 10-Yr yield below 200-DMA for first time since Nov 2017.

- Most notably have been inversions for the first time in the cycle for 2s/5s

and 3s/5s; 2s10s hit cycle lows just above 13bps earlier.

- Eurodollar futures up across the strip, with Reds through Blues up 2.0-3.0

ticks. Flattening suggests sustained Fed hike cycle being priced out.

- Fed Chair Powell commented late Monday that "FOMC has made a great deal of

progress towards its mission goals" although he has acknowledged "long-term

challenges in to an otherwise strong economy."

-Limited data today (Redbook retail sales, ISM-NY, IBD/TIPP Optimism index).