The 10Y TYZ7 contract has traded....>

US TSYS SUMMARY: The 10Y TYZ7 contract has traded in a 126-20+ to 126-26 range

since the Asian trading session began. The 1bp tail on the 10Y auctions does not

appear to have had a lasting impact upon the market. about the only events of

interest were the new iPhone and a further drop in Bitcoin after JP Morgan's

Dimon went on the attack against the currency.

- There is not much of a risk trade happening either with the yen stabilising at

110 against the dollar.

- Ahead of the Bond auction later today, there is actually a flattening of the

10-30Y section of the curve, with the Ultra contract performing particularly

well. 

- Swap spreads are fairly stable and appear reasonably immune from the decent

corporate issuance, although the flat yield curve reduces the incentive for

issuers to swap into floating.