The Treasury market got out of......>

US TSYS SUMMARY: The Treasury market got out of bed on the wrong side as it

tumbled after a return from the President's Day holiday. The front end belly of

the curve absorbed most of the selling, with the 3Y being the weakest tenor on

the curve, showing a 4.1bp yield rise.

- Short-dated yields are at their highest since 2008 as the market frets over

the $258bln of 4 week to 7Y supply that will be seen in the coming 3 days.

- The Treasury curve is is flattening from the 10-30Y but very little along the

2-10Y section of the curve today.

- Equity markets are fairly stable but the yen has weakened significantly,

somewhat consistent with the correlation that used to exist between UST yields.

- Selling has been concentrated in Treasuries; swap spreads have narrowed today

led by a 0.4bp decline in the 3Y.

- Aside from $55bln of 4 week bills, $51bln of 3m bills, $45bln of 6m bills, the

Treasury sells $28bln of 2Y coupon paper later today. 

- There are no data releases to distract the market today