Tight re-open for T-Notes, -0-02 at.........>

US TSYS: Tight re-open for T-Notes, -0-02 at 129-08+, after cautious CNBC & SCMP

source reports stemming from Beijing re: the trade war saw the contract correct

sharply from lows in Monday's NY session. The bid faded as we moved towards the

close, leaving T-Notes shy of highs & yields 0.6-1.6bp lower across the curve.

- Elsewhere, Trump & Mnuchin met with Fed Chair Powell. Trump tweeted

"Everything was discussed including interest rates, negative interest, low

inflation, easing, Dollar strength & its effect on manufacturing, trade with

China, E.U. & others, etc." The Fed noted that Powell's comments "were

consistent with his remarks at his congressional hearings last week. He did not

discuss his expectations for monetary policy, except to stress that the path of

policy will depend entirely on incoming information that bears on the outlook

for the economy." The central banked reaffirmed its political independence.

Fedspeak saw Mester (hawk) note that she didn't support the Fed's run of 3 25bp

rate cuts, while dissenting voter Rosengren warned against risks of financial

stability in pursuit of 2% inflation. An address from Fed's Williams, housing

starts, building permits & 10-Year TIPS supply are all due Tuesday.