The Treasury yield is mostly........>

US TSYS SUMMARY: The Treasury yield is mostly around 1.01.5bp higher across the

curve and there is a small curve flattening between 10Y and the Bond.

- Yellen spoke at the weekend in which she repeated that her best guess was that

the soft inflation readings would not persist and that gradual rate hikes were

coming.

- Data from the Commitment of Traders report shows near fresh highs in dealer

longs with the eurodollar space. It is likely that much of these positions

offset decent 0-2Y primary dealer positions and swap books. Primary dealer longs

in 0-2Y usually come from central bank selling.

- There is no coupon supply in the USD this week and the economic calendar is

fairly second tier.