In Asia the 10Y US Tsys yield.......>

US TSYS SUMMARY: In Asia the 10Y US Tsys yield started off marginally lower.

However, as European markets opened the yield moved higher near yesterday's

close of 2.464% before fading back to the lows.

- The main story out of the US was that the Senate had approved the tax reform

bill in the early hours of Wednesday morning by a 51-48 vote. However, the Bill

had to be sent back to the House for a re-vote, which had passed it on Tuesday

due to a procedural error on that left the Republicans red faced.

- Traders reported that a move back to the mid 2.40% area for the 10Y yield saw

Asian investors quickly taking advantage. In particular Real Money, Central

Banks and Regionals added duration through spread product throughout the Tokyo

morning. However, it was noted that countering this buying security houses and

leveraged accounts were seen selling the 10Y sector.

- On the day the 10s have outperformed slightly and volumes have been relatively

light. 2s10s is 1.2bp tighter and 10s30s is 1bp wider. 

- Looking ahead markets will focus on the Existing Home Sales data for November,

which is due to be released at 1500GMT.