U.S. Tsys have started the week on the......>

US TSYS: U.S. Tsys have started the week on the backfoot, with broader markets

seemingly breathing a sigh of relief after the U.S. China trade spat failed to

escalate further over the weekend, with Asia-Pacific equities broadly higher, as

the major fixed income benchmarks edge lower and the yuan firms. 

- It is also worth noting that the uptick in risk appetite has taken place

despite U.S. Secretary of State Mike Pompeo dismissing North Korea's accusation

of a "gangster-like mindset" in denuclearization talks, saying the two nations

had productive conversations that will continue in the days ahead.

- The belly of the curve has experienced some modest underperformance, with eyes

on 3-, 10- & 30-Year supply due later this week. While there are plenty of U.S.

risk events to digest including Fed Chairman Powell's semi-annual MonPol report,

U.S. CPI, PPI & University of Michigan sentiment. Fedspeak elsewhere will

dominate, with Williams, Kashkari, Harker & Bostic due up.

- The Eurodollar strip has edged lower, with the reds 1.5-2.0 ticks lower, with

the further out contracts moving in parallel.

- T-Notes last at 120.07, U.S. 10-Year Tsy yields last at 2.842%.