Markets are finding some light......>

US TSYS SUMMARY: Markets are finding some light relief that there has been no

reaction from either Russia, Iran and Syria following coalition missile strikes

late Friday apart from a few choice words and has lead to US Treasury yields

squeezing higher on light risk-on flows. US 10-yr yield last 2.8bp higher at

2.854%.

- The space moved lower in early Asia-Pacific dealing as markets discounted the

US-led missile strikes on Syria as a "one-off", but did manage to pare losses as

markets looked to reaction at European open.

- Bunds opened on the soft side and then extended losses as equity markets

opened positively and Treasuries duly followed with the current 2-yr yield

hitting fresh multi-year high of 2.384%.

- Swaps are running a little tighter in the main, although notable flow has been

limited in space. While Euro$'s are 1 to 2 ticks lower

- US retail sales headline the economic docket this week, and will hit on

Monday, with FOMC voter Bostic & non-voters Kaplan & Kashkari set to make

addresses on Monday.