The escalation of tensions in Hong Kong.....>

US TSYS: The escalation of tensions in Hong Kong provided some support for core

FI, although ranges were contained as traders continue to look for further

clarity on the Sino-U.S. trade front, following the latest "constructive"

high-level phone call between negotiators on both sides of the fence. Weekend

news saw the NYT write "The Trump admin is set to once again extend a license

that will allow American companies to continue doing business with Huawei, the

Chinese telecom giant, people familiar with the deliberations said."

- Elsewhere, the PBoC decided to cut the rate applied to its 7-Day reverse repo

facility by 5bp, allowing core FI to ease back from best levels & took the edge

off of the Asia-Pac session, even with posturing re: the Taiwan Strait evident.

- Fed's Daly failed to add to the MonPol debate over the weekend.

- T-Notes +0-02+ at 129-07, yields 0.1-0.7bp lower across the curve at writing.

- Flow wise, we saw 4.0K of the FVZ9 119.00 calls lifted, while over 7.0K of the

TYZ9 128.25 puts were lifted during Asia hours.

- Eurodollar futures contained to +/-0.5 tick through the reds.

- TIC flow data & an address from Fed's Mester headline Monday's local calendar.