Tsys finished lower but off of the.....>

US TSY/RECAP: Tsys finished lower but off of the early session lows, after

see-sawing in a relatively narrow range on Monday.

- Traders had little to work with against a backdrop of second-tier data & the

FOMC in media blackout ahead of its upcoming MonPol decision. The space eased as

geopolitical tension softened over the weekend, with cautious optimism

surrounding US-China trade relations & North Korea. 

- The first half of the session was subject to decent futures volume, although

Monday represented a relatively quiet start to the week after 10-Year yields

failed to breach 3.00%. Better buying & short covering into early weakness

helped the space to recover. Flow included prop accounts, bank portfolio and

real money names buying in intermediates out to the long end. Heavy Eurodollar

option volume was also noted, early put buying targeted year end hikes to be

priced into the curve, meanwhile, short end Eurodollar futures were well bid as

3M $LIBOR fixed modestly higher. Large upside call buys were noted in the second

half of the session.

- T-Notes last at 119.11, US 10 Years yields last at 2.975%.