The Treasury market is suffering in the.....>

US TSYS: The Treasury market is suffering in the first moments of the New Year.

The tug lower is mostly provided by the core EGB markets, which have peeled

lower because of a hawkish comments by ECB Board Member Benoit Coeure.

- The Treasury curve is steepening with the 30Y yield +3.6bp but the 5Y only

+1.5bp higher. We have identified 5-30Y swap curve trades being executed this

morning.

- Eurozone final PMI releases were in line with the preliminary estimate but the

text that accompanies the releases pointed to increased price pressure. 

- There is very little in the way of data in the US, although Friday brings

non-farm payrolls. Congress returns tomorrow and will need to find a quick

solution to continued funding of the government.

- Today is Bill auction day with an all-time record $160bln being sold via 4

lines that includes $50bln of 4wk, $48bln of 3m, $42bln of 6m and $20bln 52wk.

some of this weight will be supported by a $40bln CMB that matures.

- Currently, the 10Y yield is at 2.429%, support is at the 21-DMA at 2.404% and

the resistance at 2.441%, the low from Dec 26.