Quiet trade so far in Asia-Pac, Japanese....>

US TSYS: Quiet trade so far in Asia-Pac, Japanese markets still on holiday which

is keeping activity subdued. UST's bear steepened yesterday and are flat on the

US close after a slight bounce in late trade.

- The modest recovery is being attributed to reports from CBS that North Korea

could be preparing for another ICBM test later this week or next week. CBS cite

activity at the site where the last ICMB test took place in November. US

Ambassador to the UN Nikki Haley said that the US were aware of the rumours and

would take tougher steps against North Korea if this were the case referring to

recent sanctions.

- T-Notes last flat at 123.22, up from lows of 123.17 in US trade.