During the US afternoon, the US.....>

US TSYS SUMMARY: During the US afternoon, the US Treasury market made an attempt

to drag back the rises in yield seen earlier in the week. This was helped by a

startlingly strong 7Y note auction that stopped 1.1bp through the WI bid side.

- In Asian and early Europe, the rally rang out of steam. The 10Y UST has traded

within 1bp of 2.31% throughout these two sessions. Events were slightly

different at the front end of the yield curve and the 3Y (after having rallied

very hard yesterday) pushed yields up fastest today. 

- Swap spreads are unchanged today, with the exception of a small bid to the 2Y.

- Looking ahead, there is a month-end extension of 0.07Y, that should mostly

kick in around 2.30-3.00pm Eastern time and the data is highlighted by the PCE

report, MNI Chicago Business Sentiment and Univ of Michigan.

- Despite it being quarter end, there is no significant upward (or downward)

movement yet in the GCF repo rate.