T-Notes hover around the mid-point of.......>

US TSYS: T-Notes hover around the mid-point of their Asia-Pac range. The cash

curve was subjected to some twist flattening for most of the overnight session,

with the short end under some modest pressure ahead of today's supply schedule

which includes 3- & 6-Month Bills, in addition to 2- & 5-Year Notes. The long

end has been supported by the worry surrounding Italy/global trade matters.

- Outside of futures roll activity the highlight flow wise was a 20.0K block

seller of the TYN9 124.50/126.00 call spread, as well as limited 5-Year downside

interest via the familiar 116.00 and 115.75 strikes in FVN9 options that have

been popular in recent Asia-Pacific sessions.

- The U.S. docket will see various second tier economic releases today.

- Eurodollar futures unch-0.5 ticks higher through the reds.

- T-Notes last 125-00+, U.S. 10-Year cash Tsy yields last 2.310%.