*** Choppy trade by the open,.......>

US TSYS SUMMARY: *** Choppy trade by the open, long end rebounds to mildly

higher after recent Block sale of -14k TYU 126-00 helped push entire curve to

session lows.

- Asia, light two-way flow on net included Asian credit tied selling in Tsys,

credit funds bought 30s, foreign central bank buying in 10s. foreign central

bank buying on pull-backs, end user accts two-way in 10s. Asian real$ buying in

the short end, Asian real$ selling in the intermediates, credit acct buying out

the curve, light fx-tied sales.

- London, quiet start to wk, Tsys trailed softer/range bound EGBs. 

- Swaps, spreads running mixed, spread curve flatter amid in-line rate paying in

2s and receiving in 10s, corporate and asset manager paying in the

intermediates. 

- Overnight repo, mild special in 2s, 3s, 5s and 10s.

- Corporate supply return following Fri absence. BAT investor calls are

Mon-Tues, chatter BAT to attempt $25B debt placement. On the watch for potential

Apple (AAPL) issuance.