The Dec-17 T-note future has........>

US TSYS SUMMARY: The Dec-17 T-note future has flat-lined since US markets closed

last night, remaining within a few ticks of 125-03. The 10Y yield is close to

unchanged at 1.33%.

- There marginally softer-than-average auctions at 2Y and 5Y tenors yesterday

but given the amount of supply, the markets appeared quite forgiving. 

- Once again, there has been little reaction in the Treasury market to the

strength in the Bund contract in European trading. Instead, the lack of movement

in the yen held greater sway.

- The 3m EURUSD cross currency basis swap should be attracting more attention as

the year-end approaches and fell 1.7bp today. The 5Y equivalent is moving much

less so the pressure is in the money markets rather than issuance led.

- Attention switches to the Powell confirmation hearing later today. The

introductory statement was published on the Fed website and contained little

market-moving information. It is widely thought that he will not be contentious

today.

- A few hours later, weekly coupon supply is concluded with the 7Y note auction.