Once the market settled down........>

US TSYS SUMMARY: Once the market settled down after Friday's employment report

the 10Y T-note tracked along inside a tight range between 126-00+ and 126-04+

until there was a sudden lurch lower in the early European session.

- In Asia, the JPY virtually flat-lined and the oil price was also nearly

immovable. 

- The only fireworks on Monday originated in a strange place i.e. the Swissie.

Swiss sight deposits data prompted a weakening in the Swissie against the euro

and then the strength of the euro was accelerated as stop-losses were triggered

in a number of currency pairs. Eventually, these FX-related movements led to a

decline in the TY contract to 125-30 before some buying arrived.

- Along the curve, the 5Y area of the US is weakest on Monday, with a 1.7bp rise

in yield but the top end of the curve is flattening, the 30Y yield is only 0.4bp

higher today.

- Technically, for the UST 10Y yield, Friday's rally provided bulls breathing

room but a close above the 200 day DMA is needed to confirm a return in focus to

2.237%-2.396% where a daily bear channel top (2.343%) is noted.