Quiet week opener, Tsys drifting....>

US TSYS SUMMARY: Quiet week opener, Tsys drifting off session lows by the bell,

curves extending to new 10+ year lows. Tsys opened w/risk-on tone w/equities

higher -- likely due to the limited response/react from Syria, Russia after

US/French/UK coordinated missile strike against Syrian chem sites.

- US$ index lower/off lows (DXY -.339, 89.461); equities pushing higher (emini

+25.75, 2683.0); gold firmer (XAU +1.26, 1346.69); West Texas crude weaker (WTI

-1.05, 66.34).

- With the wick of geo-pol sensitivity never far from being lit, early focus

turned to data, Mar retail sales +0.6%, stronger than analysts' exp +0.3% and

whisper exp +0.2%. Tsys drifted off lows following the better than expected

data, fast$ covering during brief participation vacuum. Early FX-tied sales in

10s carry-over from overnight. Little react to Fed Dudley comments. 

- Rather decent corp issuance (awaiting details on Citi, JPM) generating early

hedging. Light two-way swap flow w/spds running mildly tighter, 2s and 10s

leading. Decent Eurodollar put buying, targeting Dec 18. Late ylds: 2Y 2.361%,

3Y 2.500%, 5Y 2.669%, 7Y 2.772%, 10Y 2.821%, 30Y 3.024%