Tsys stuck to a tight range overnight,......>

US TSYS: Tsys stuck to a tight range overnight, with broader activity relatively

limited during the Asia-Pacific time zone. T-Notes last deal +0-01 at 127-06+,

with cash yields little changed across the curve, unch.-0.4bp lower on the day

at writing.

- The space operated on well below average volume for the time zone, in the wake

of Trump upping the ante on Monday, as he pointed to latest Chinese GDP data as

a sign of weakness , and noted that himself & his Chinese counterpart Xi

probably weren't as good friends as they had been previously (even though he

acknowledged the need for such a move owing to the trade talks). Chinese state

media has been quite critical of Trump's comments. Still, Monday saw U.S. Tsy

Sec Mnuchin note that U.S. & Chinese officials will speak by phone this week.

- Also worth flagging that Mnuchin will meet with House Speaker Pelosi today, in

order to discuss matters surrounding the debt ceiling.

- Eurodollar futures trade unchanged to 0.5 tick higher through the reds.

- The U.S. domestic docket picks up today, with retail sales data headlining,

while Fedspeak will come from Powell, Bowman, Evans, Bostic & Kaplan.