The 10Y UST yield has dipped........>

US TSYS SUMMARY: The 10Y UST yield has dipped 0.7bp this morning and nearly all

of that move has been in European trading as the Gilt market appears to be

leading the charge in developed market bonds.

- Gilts are benefiting from a re-think of how important the 'breakthrough' deal

really was following the weekend. The Gilt curve is around 3-5bp lower across

the curve. 

- There is no apparent impact from the debt-ceiling suspension ending as the

Treasury begins its usual mix of extra-ordinary measures.

- Last week, there was considerable attention on the dramatic movement in the

EURUSD and JPYUSD 3m cross currency basis swap, that accompanied the usual year

end dollar shortage. These days, banks are allowed to use the basis swap in

assisting their 3m libor submissions and so 3m Libor-OIS spreads have been

widening. However, the basis swaps have become slightly less negative today.3m

EURUSD jumped 5bp to -58bp.

- Unusually for a Monday, there are both 3Y (11.30 Eastern) and 10Y auctions

(1pm Eastern) today. The data calendar includes only the JOLTS report.