Tsys firmer, near top end of range.....>

US TSY FLOWS: Tsys firmer, near top end of range after earlier chop. Heavy

futures volume driven again by March/June roll trade ahead Thu's first notice

date. Equities hovering near steady (SPX 2797.0) again on choppy trade as

US/China trade optimism cools. US$ index off late session lows (DXY -.370 at

96.043 vs. 95.948L).

- Tsys trimmed gains after Fed chairs prepared remarks released ahead testimony,

appears mkt was anticipated more of a dovish tone from largely boiler plate

comments; second round of selling on mid-morning data, pick-up in cons

confidence. Block buys TYH earlier, 2s10s steepener blocks via June futures,

deal-tied selling 3s-20s, Heavy option-tied two-way flow. 7Y Note auction

stopped through

- On tap for Wednesday: Dec advance goods trade gap, advance wholesale and

retail inventories, factory new orders, NAR pending home sales index for

January. Fed Chair Powell, Mon/Pol and State of Economy testimony to the House

Financial Services Committee. Tsy cash/ylds: 2Y 100-01.12 (2.480%), 5Y 99-21

(2.447%), 10Y 99-28 (2.637%), 30Y 99-27 (3.007%).