The short-end Treasury rally........>

US TSYS SUMMARY: The short-end Treasury rally continues apace Wednesday.

- The 3M10Yr spread hit another cycle low at -11.035; last at -8.492. Otherwise

Tsy curve is largely steeper with a huge drop in short end yields.

- The 2-Yr yield is down 7.4bps at 2.192%, 5-Yr is down 6bps at 2.1446%, 10-Yr

is down 5bps at 2.3735%, and 30-Yr is down 3.6bps at 2.8371%.

- Jun 2-Yr futures (TU) up 3.375/32 at 106-23.125 (L: 106-19 / H: 106-25.25);

10-Yr (TY) up 11/32 at 124-24 (L: 124-08.5 / H: 124-31).

- No specific trigger for the move. Some point to dovish comments from potential

new FOMC member Moore (called for 50bps in cuts in NYT interview last night).

- Broadly though have seen risk-off since mid-European morning, with S&P E-mini

futures falling 0.42% in a half-hour span (0540ET-0611ET).

- Dallas Fed`s Kaplan told the WSJ in an interview it is too early to consider

cutting rates (that crossed the wires at 0530ET so possible contributor to

equity sell-off).

- Trade balance data and speech on econ outlook and monetary policy from KC

Fed's Esther George after the close are the calendar highlights.