The space moved to session highs after......>

US TSYS: The space moved to session highs after the Washington Post reported

that US Special Counsel Mueller raised the possibility of a presidential

subpoena in a tense meeting with Trump's legal team, but has since eased with

T-Notes testing Tuesday's low after the Chinese Caixin PMI was slightly firmer

than expected.

- The curve is now sitting a little steeper in the main as the belly

underperforms.

- The white & red Eurodollar contracts largely trade flat to a 0.5 tick higher,

off of the overnight highs.

- Focus is on Wednesday's FOMC MonPol decision, with the Fed expected to stand

pat. Participants are looking to the June meeting, with markets fully pricing in

a hike at next month's decision. US ADP data will also hit on Wednesday.

- The US Tsy will also announce its quarterly refunding details.

- T-Notes last at 119.12, Tsy ylds: 2Y 2.500%, 3Y 2.638%, 5Y 2.818%, 7Y 2.935%,

10Y 2.978%, 30Y 3.138%