Tsys hover above overnight lows after.......>

US TSYS: Tsys hover above overnight lows after being pressured by broader

risk-on appetite stemming from stronger than expected Chinese data & optimism

re: U.S. China trade matters. The belly of the curve is underperforming, with

sources pointing to continued profit taking on 5s30s steepeners. The

3-Month/10-Year spread edged higher, after closing in positive territory (just)

on Friday.

- Looking at market specifics, BBG reported that Saudi Aramco has hired banks

for a USD bond roadshow which applied further pressure.

- Friday saw Fed Gov. Quarles note that the strength of the U.S. econ may result

in additional rate hikes being required at some point. Also Friday, White House

econ. adv. Kudlow suggested that the Fed should immediately cut rates by 50bp

(echoing Trump's Fed nominee Moore), before Trump himself criticised the Fed's

MonPol decisions via Twitter.

- Eurodollar futures trade 1.0-4.0 ticks lower through the reds.

- Retail sales & ISM m'fing data headline the U.S. docket today.

- T-Notes last 124.00+, U.S. 10-Year cash Tsy yields last 2.433%.