Tsys have edged lower from the get go on....>

US TSYS: Tsys have edged lower from the get go on Monday, as the modest risk off

flows stemming from the weekend's G7 summit have subsided.

- Wednesday's FOMC decision & Tuesday's US CPI release provide the key US

economic points of interest this week. With traders also set to focus on trade

rhetoric & the US-North Korea summit in Singapore.

- Most expect the FOMC to hike on Wednesday, so focus will move onto the

accompanying statement and dot plot. The main focus here will be whether or not

the FOMC's median dot looks for 4 hikes in total during 2018 (including those

already conducted), against the current 3. It is worth noting only one FOMC

member needs to up their forecast to 4 hikes for this to come to fruition.

Elsewhere language re: the neutral interest rate & the symmetrical nature of the

Fed's inflation target will be scrutinised, and Fedwatchers will also be on the

lookout for a potential 20bp hike in the IOER.

- Participants also eye a front-loaded issuance docket, with 3- & 10-Year notes

due on Monday, ahead of Tuesday's 30-Year Bond auction.

- T-Notes last at 119.14+, US 10-Year yield last at 2.955%.