The Treasury market weakened........>

US TSYS SUMMARY: The Treasury market weakened slightly as Asian trade

recommenced after the weekend although trading has been very sleepy. Indeed, the

US market may be particularly sleepy today as US clocks moved forward one hour

at the weekend.

- The 10Y UST yield is 0.2bp higher at 2.895% and there has been a fairly subtle

flattening across the yield curve relative to the close of Friday. The 30Y is

attempting to buck rising yield theme, where yield movements are minimal. There

is notably greater weakness in the TUM8 CTD, the UST 1.375% Mar-20, which is

1.2bp higher in yield today. Likely linked to the 3Y auction later today.

- Friday's release of the CoT Report showed asset managers remained very long 2Y

notes, dealers increased euro$ longs to a massive $210bln 10Y equivalents. 

- Short-dated swap rates have shown more movement, with the libor pressures

feeding through and 2Y Treasury swap spreads 0.75bp wider at 31bp, the widest

since April 2017.

- Little economic data. Treasury sells $51bln 3m bills, E45bln 6m bills, $28bln

3Y notes and $21bln 10Y notes.