The 10-Year T-note futures..........>

US TSYS SUMMARY: The 10-Year T-note futures contract is sat at very important

technical levels in the approach to 127-00 the figure and the generally bullish

market today has left the contract at 126-26. 

- Naturally, the Barcelona terror attack has dominated the trading environment

today, although most of the price impact was seen during Thursday afternoon's

trade session. Additionally, Bunds have firmed because of a large curve

flattener trade between Schatz and Bobls. 

- In the bill market, a notable development was the further decline in the 3m

bill to below 1% (currently at 0.985%) as hopes for a near term Fed rate hike

have waned. However, the 2Y note yields do not have much of a bid.

- The Fed confirmed that Janet Yellen would speak at Jackson Hole on Aug 25

about financial stability. 

- Along the curve, Bonds above the CTD of the Bond contract are showing greatest

strength.

- Fed data from last night showed that the good run up in Treasury custody

holdings seen in June has yet to be seen in August's data.