The main mover overnight was the....>

US TSYS SUMMARY: The main mover overnight was the yen, which strengthened to its

strongest level against the dollar in 15 months as Japanese FM, Aso said that

there were no plans to intervene. The yen's correlation with Treasuries pulled

the latter lower and meant that Treasuries weakened.

- Equity markets are smartly higher today with the eurostoxx +1.2% and the S&P

mini future pointing to a 0.75% jump at the US open.

- Source speaks of the high open interest on the TYH8 120 puts, which stands at

137k contracts and with only 8 days before expiry, a source says that this

should act as a decent attractor prior to next Friday.

- Currently, the 2Y UST yield is 2bp higher at 2.184%, a new 10Y high and the

10Y is 1.6bp higher at 2.92%, the highest since Jan-2014.

- there is no coupon supply this week and the attention turns to empire, initial

claims, PPI, Philly Fed, IP, NAHB and TICS data, a fairly heavy schedule of

second tier data.