Very quiet start to the week, not......>

US TSY FLOWS: Very quiet start to the week, not entirely surprising w/limited

data w/NY Fed Consumer Sentiment (no react); Tsy auctions: 13- and 26W bills; no

Fed speak today, but picks up later in week. Light futures volume (TYH<935k);

Tsy yld curves steeper w/long end giving up early gains.

- Rates kicked off w/risk-off tone spurred by weak China trade data overnight,

global equities lower and US$/Yen near lows. 

- Risk off tone short lived, however. Long end Tsys reversed course/traded lower

by midmorning, taking cues from lower German bunds, as well as equities

rebounding off opening lows. Q4 corporate earnings kick off in earnest this

week, expect corporate issuance to ramp up after financial names annc.

Ironically, Citi revenues missed expectations, but shares quickly recovered (C

+2.45 at 89.08, +4.34%).

- Session flow included better buyers in 2s-5s, two-way in the belly to long end

w/better real$ and bank portfolio selling in long end by midday. Concerted

steepener interest as well. Tsy cash/ylds: 2Y 99-30 (2.535%), 5Y 100-14.25

(2.527%), 10Y 103-18.5 (2.706%), 30Y 106-04.5 (3.059%).