The 10Y Treasury yield was 2.90%....>

US TSYS SUMMARY: The 10Y Treasury yield was 2.90% when the Fed Minutes hit and

these pushed yields to 2.95%. We heard of some Asian CB buying stepping in and

liquidity picked up as all of Asia was at their desk after the Chinese New Year

Holidays.

- As Europe opened, EGBs pushed back against losses forced upon them by the

hawkish FOMC Minutes and began to rally. However, weak data from the German IFO

sent EGBs are Treasuries sharply higher and a downward revision to UK GDP helped

push all bonds higher again. Weaker equities are providing a further boost to

global debt markets.

- As a consequence, the 10Y UST yield is 3bp lower than the close last night at

2.92%, leaving just 2bp above the pre-FOMC level.

- Later today, the US Treasury sells $29bln of 7Y debt that will mark a close on

the mammoth $285bln of supply since Tuesday. Recent heavy supply continues to

pressure USTs, with the 3Y swap spread 0.7bp narrower today.

- Economic data is limited to initial jobless claims and Kansas City Fed.