Slight weakness in T-Notes during early.....>

US TSYS: Slight weakness in T-Notes during early European hours, which looks to

be Bund driven, with the German benchmark pressured around 07:00 GMT

(corresponding with the "old open"). There was no notable headline driver

apparent at the time of sell off, with contacts pointing to thin

markets/potential CTA driven selling.

- TYH0 registered a marginal fresh low on the move, but still sticks to a 0-04

tick range, last -0-02 at 128-19, 0-01 off worst levels.

- Light twist steepening has been evident in cash trade, with 2s outperforming,

perhaps owing to the impending round of repo ops from the NY Fed.