Since Monday, the intraday..........>

US TSYS SUMMARY: Since Monday, the intraday correlation between the S&P mini

index future and the US 10Y yield has been approached one. There was certainly

no significant breakdown in the European morning session, between these two

instruments although the decline in the 10Y was perhaps slightly more than the

recent relationship has suggested.

- Relative to the US close, the 5-10Y section of the curve has dropped around

4bp and the S&P mini points to a 0.8% drop at the open of equity trading later

today.

- The House approved a stop-gap spending bill and the baton now passes to the

Senate. Trump remarked that he would love to see a shutdown over immigration. At

12:01 am on Friday, the government will run out of funding.

- Swap market activity is very heavily concentrated in the 1-3Y section of the

curve today. 

- Data is third tier today. The US Treasury sells $24bln of a new 10Y at 1330ET.