Tsys were weaker by the bell, but......>

US TSY/RECAP: Tsys were weaker by the bell, but struggled to extend on the lows

seen in Asia amid choppy trading conditions. Flow was mixed on the day, with

Saudi Arabia's $11bln worth of USD denominated issuance headlining.

- Equities were a little higher, but optimism was contained as headlines crossed

noting that the US rejected China's offer to cut the trade deficit by $50bln. -

The curve exhibited a degree of bear-flattening, as the 5s-30s spread touched

the flattest level since 2007.

- The latest 3-Year auction was pretty much on the screws, cover was largely in

line with the recent averages while indirect take up fell to the lowest level

seen since September of last year.

- The Eurodollar strip was lower by the bell, although the space was off of lows

range on moderate volume with many side-lined ahead Wed's FOMC minutes.

- Outside of the FOMC meeting minutes US CPI will hit on Wednesday, with 10-Year

Notes & 30-Year Bonds up on the auction block on Wednesday & Thursday

respectively. Fed voter Bostic is due to speak in Asian hours.

- T-Notes last at 120.22+, US 10-Year yield last at 2.801%.