Tsys came under some modest pressure in.....>

US TSYS: Tsys came under some modest pressure in early Asia-Pacific trade, with

broader risk-on flows apparent. However, the scale of the move was limited, and

largely driven by a ~4.0K sell order in TYH9, as S&P futures breached Monday's

high. T-Notes and cash yields stuck to tight ranges as U.S. equity index futures

& regional stock benchmarks moved higher. Yields are up 0.8-1.2bp across the

curve at writing.

- Chinese fiscal stimulus underpinned risk appetite (although wasn't

particularly surprising), with the market focused on familiar themes i.e. the

ongoing U.S. gov't shutdown (with the Dems trying to pass a stopgap funding bill

and talk of cross party meetings) & Fedspeak ahead of the blackout period. There

is also growing speculation re: an impending summit between U.S. Pres. Trump &

North Korean leader Kim.

- The Eurodollar strip trades unch. to 2.0 ticks lower across the whites & reds.

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

Brexit vote will also draw attention.

- T-Notes last 121.27, U.S. 10-Year cash Tsy yields last 2.715%.