The space was dragged away from session.....>

US TSYS: The space was dragged away from session lows on the back of a softer

than expected Australian labour market report, but has reverted to mid-range,

T-Note futures stuck to a 3 tick range.

- Sources note limited flow in the cash space overnight.

- The Tsy curve has undergone a modest degree of bull flattening in Asia,

although price action has been somewhat limited.

- The Eurodollar strip is mainly higher with the white and red contracts

unchanged to a tick better off.

- Focus on Thursday will fall on Fed Governors Brainard & Quarles, as well as

FOMC voter Mester. The space will also have to digest a 5-Year TIPS auction.

- T-Notes last at 120.04+ yields: 2Y 2.427%, 3Y 2.572%, 5Y 2.728%, 7Y 2.824%,

10Y 2.865%, 30Y 3.050%.