BMO's Ian Lyngen noted that........>

US TSYS/RESEARCH: BMO's Ian Lyngen noted that "with China back from a week long

holiday on Monday and the US and Canada returning today, this truncated week

will prove the first key test of the levels" in Treasuries "approached last week

on the back of the (Sept) payrolls report." He added that "low cash volumes last

night (73% of the 10-day MA) highlight that it will take some time before

investors have had an opportunity to express their views in liquid markets." 

- He adds that "with a plethora of Tier 1 data this week capped by the FOMC

minutes on Wednesday, as well as Retail Sales and CPI on Friday, it's unlikely

we'll have to wait too long for the market's verdict. The backdrop of political

theater in Spain with the Catalonian Parliament meeting today to possibly

declare independence is adding marginally to the bid, and keeping 10-year yields

well off their 2.40% Friday highs, despite generally stronger European data

yesterday and overnight, and multi-year highs in Asian stocks."