T-Notes have moved back from highs to.......>

US TSYS: T-Notes have moved back from highs to last trade 1+ tick better off. It

may be a case of the uptick (which was probably driven by a dovish RBNZ and

spill over into broader bonds) running out of momentum, or participants focusing

on the move higher in Chinese stocks.

- There was some interest in downside plays via the TYV8 118.00-117.50 1x2 put

spread in early Asia-Pacific dealing, with over 5.0K of the position changing

hands.

- The belly of the curve has experienced some modest outperformance in cash

dealing.

- Elsewhere, the Eurodollar strip trades virtually unchanged on subdued volume.

- Fed's Evans & U.S. PPI due later today, as well as 30-Year supply.

- T-Notes last at 119.17+, U.S. 10-Year cash yields last at 2.958%.