Tsys have held higher in early dealing,.....>

US TSYS: Tsys have held higher in early dealing, supported by hawkish trade

rhetoric from U.S. VP Pence re: China over the weekend, while the APEC summit

failed to result in a common communique, with trade war matters causing issues.

- As a reminder, Tsys finished higher on Friday, with the belly outperforming.

Fed's Clarida sounded more cautious about the econ, before a WSJ interview with

Fed's Harker crossed noting that "he isn't ready to support the central bank

raising short-term interest rates again next month, given the modest outlook for

inflation." N.B. Harker doesn't vote until '20 & has prev. highlighted a

preference for 3 hikes in total during '18. Earlier Fri U.S. Pres Trump stated

that China will make a deal. Trump also announced he had finished, but not

submitted, answers to Mueller probe questions. That was before U.S. off'ls noted

that the "Pres was simply expressing optimism about ongoing negotiations with

the Chinese when he said the US may not have to impose additional tariffs."

- Durable goods & flash PMIs highlight the U.S. economic docket during this

holiday shortened week, with Fed's Williams due to speak on Monday.

- T-Notes last 119.08, U.S. 10-Year cash Tsy last 3.061%.