U.S. markets return from the long...>

US TSYS SUMMARY: U.S. markets return from the long weekend to a sharp downturn

in risk sentiment, with bull flattening in the Tsy curve amid flight to quality.

- The 2-Yr yield is down 0.4bps at 1.5%, 5-Yr is down 0.8bps at 1.3784%, 10-Yr

is down 1.4bps at 1.4825%, and 30-Yr is down 1.8bps at 1.9446%.

- Dec 10-Yr futures (TY) up 5.5/32 at 131-28.5 (L: 131-16.5 / H: 132-02.5).

- Fairly quiet overnight in Asia-Pac, but as Europe came in, stocks went sharply

lower (E-minis -0.9%) as Brexit risks / early U.K. election seen driving

risk-off, with dollar hitting 34-yr high vs GBP.

- Attention will be paid all day to Brexit headlines, less so Italy as 5-Star

and PD setting out policy agenda and 5-Star membership votes on coalition.

- Slight bull flattening in Eurodollar strip, most contracts up 2-4 ticks.

- ISM Aug manufacturing survey and Jul cons. spending out at 1000ET.

- FOMC`s Rosengren (hawk, 2019 voter, Jul dissent) speaks after market close.