There was a ltd econ data backdrop.....>

US TSY/RECAP: There was a ltd econ data backdrop apparent Monday with the

ongoing U.S. gov't shutdown in focus, Fedspeak will likely dominate the

remainder of the week. T-Notes closed near lows, with the cash space twist

steepening. Early risk-off tone spurred by weak China trade data overnight, with

cash Tsys closed in Asia-Pac hours owing to a Japanese holiday. Long end Tsys

reversed course/traded lower by mid-U.S. morning, taking cues from lower German

bunds, as well as equities rebounding off opening lows. Q4 corporate earnings

kick off in earnest this week, expect corporate issuance to ramp up after

financial names report. Citi revenues missed expectations but shares quickly

recovered. Fed Vice-Chair Clarida reiterated recent cautious message.

- Early pull back from best levels was aided by outright block sales in FV & TY,

wits a 2s5s steepener also noted.

- The Eurodollar strip saw the white pack trading mixed with the rest of the

strip trading slightly lower, on mild volume.

- Fed's George, Kashkari & Kaplan are set to speak Tuesday.

- T-Notes last 121.31, U.S. 10-Year cash Tsy yields closed at 2.702%.