It has been a relatively sedate session.....>

US TSYS: It has been a relatively sedate session for the space thus far as the

latest round of Chinese GDP data held no surprises. T-notes have operated in a

3+ tick range. The curve has traded in mixed fashion with 2-Year yields easing a

little, while yields from 5-Years out have edged higher, reversing some of the

flattening that was seen on Monday.

- The latest round of TIC flow data (for Feb) showed that China boosted its

holdings of Tsys by the largest amount in 6 months, while Japanese investors

shed their Tsy holdings, perhaps in front of the end of the FY and as USD

hedging costs moved higher.

- Indonesia has announced that it intends to issue USD denominated 10-Year

paper, while Syngenta Financial will be bring 2-, 3-, 5-, 7-, 10- & 30-Year USD

paper to market.

- Fed voters Quarles, Williams & Bostic are set to speak on Tuesday, with

non-voters Evans & Harker also set to speak.

- T-Notes last at 120.14, yields: 2Y 2.373%, 3Y 2.519%, 5Y 2.685%, 7Y 2.787%,

10Y 2.832%, 30Y 3.029%.