And MUFG's John Herrmann noted.....>

US TSYS/RESEARCH: And MUFG's John Herrmann noted that if his forecasts prove

accurate on five 25-bps rate hikes by Dec. 2019, then "the 2s-10s Treasury yld

curve may bearishly flatten towards 41.1 bps; currently the yield spread is 79.3

bps," he said.

-  He adds that ECB chief "Mario Draghi appears to have damped possible 'taper

tantrum' concerns in the euro-area, as he seemed to imply that a full taper to

zero monthly asset purchase may not happen prior to the expiration of his term

in November 2019. Mr. Draghi's signaling on QE purchases managed to reflatten

the yield curve over the prior several days, as steepening shorts may have been

covered or reduce."