After starting the European.........>

US TSYS SUMMARY: After starting the European session poorly, Treasuries

recovered well into the close to return to flat on the week as equities soured

shortly after the cash open. The e-mini S&P hit a new recovery high up at

2913.25, but the upside was short-lived as headlines flashing that Boeing could

be subject to civil and criminal scrutiny over their 737 max production

programme prompted a correction of sorts.

- The curve traded lower and flatter Tuesday, despite further evidence that the

COVID curve has flattened further in Europe. The 2s10s curve returned to circa

40bps - broadly inline with the April average.

- Focus shifts to the Fed decision due Wednesday. Substantive policy action is

unlikely at the April FOMC, a view that is shared by the vast majority of

sell-side analysts. Most areas of market functioning have smoothed out after a

stormy March, and while economic data have been predictably disastrous, it is

only in the coming months that we will have a fuller sense of the damage that

COVID-19 and the associated lockdown are doing to the economy in the near-term.