The Treasury yield curve is.........>

US TSYS SUMMARY: The Treasury yield curve is around 1.0-1.5bp wider across the

yield curve this morning but there is far more action in the derivatives markets

as the 3m Libor-OIS spread widens to 45bp, its highest since 2012.

- But distortions are extending all the way through yield curves as positions

are being adjusted. The 10Y OIS Swap vs 10Y libor swap curve spread has hit

43.4bp, the most expensive that the OIS curve has traded relative to the libor

curve since 2008.

- Heavy corporate issuance and these other movements in basis markets have

helped push the 10Y CME-LCH basis out to 3.5bp, its widest since December 2016.

- Yesterday's bill auctions saw strong demand and the 3Y and 10Y note auction

saw decent, if not exceptional, bidding.

- Today, attention flips to the macro picture with the biggest release of the

week, Feb CPI. NFIB is also released at 1000GMT, before the open of US trading.

- Later in the session, the Treasury concludes the trio of coupon auctions with

the 30Y Bond.