The long end of the curve has.......>

US TSYS SUMMARY: The long end of the curve has borne the brunt of the return of

risk appetite early Monday, with relief as Mexico tariff threats averted.

- Sep 10-Yr futures (TY) down 14/32 at 126-25 (L: 126-23 / H: 126-31).

- 1Y30Y spread is at highest since first week of Dec 2018, at 64bps up from

30bps last week. 1Y10Y (15.7bps) well off inverted levels (-15bps last week). 

- 10-Yr underperforming: 2-Yr yield is up 4.2bps at 1.8915%, 5-Yr up 5.1bps at

1.904%, 10-Yr up 5.9bps at 2.1397%, and 30-Yr up 5bps at 2.6215%.

- Eurodollar futures 4-5 ticks lower across the strip, with most weakness seen

at the long end (Golds off 5). 

- Largest flows this morning have been in ED midcurves, including 0EM9 98.375

calls sold at 0.5 in 50k, 0EZ9 99.50/99.625 cs bot in 40k all up.

- Equity futures up 0.4% as news of Mexico tariffs averted over the weekend,

despite specifics on the deal being notably thin.

- After the excitement of Friday`s employment report, the data calendar is light

Monday: only US JOLTS data. May Retail Sales, CPI, PPI come later this week.

- And no Fed speakers until post-FOMC, with the blackout period underway.