The Treasury market weakened in.....>

US TSYS SUMMARY: The Treasury market weakened in Asia but has stabilised in

Europe, despite a mini slide in the Bund contract.

- Swap flows have included a 3-5Y curve flattener in $160mln vs $100mln and a

payer of 5Y outright in E100mln at 08:39BST. There was also a $130mln TY invoice

spread roll from Sep to Dec at 09:06BST.

- The cash market is very tame this morning and there is no net change in the

10Y yield compared to the US close. At present, the 2Y is at 1.478% and the 10Y

at 2.194%.

- The cheapening of the October T-bills has been marginal but has continued as

the time before the drop dead date falls by another day.

- Hurricane Harvey is due to make landfall at 2am local time tomorrow morning

and refineries have already shut down.

- The market is only really concentrating upon the Yellen speech today.