The US Treasury market has..........>

US TSYS SUMMARY: The US Treasury market has managed to pick itself up from the

flooring it received from the poor 7Y note auction. Most of the gains have

occurred in the European session but it is fair to say that Treasuries have not

carved an independent path from EGBs or Gilts; movements are small.

- Currently, the 2Y UST yield is 0.5bp lower at 2.278% and the 10Y -1.3bp at

2.768%. The 2-10Y spread is 49bp and is close to a 10Y+ low.

- Swap spreads are wider at the front end of the yield curve, led by a 0.625bp

widening in the 2Y. 

- Towards the close of trading today should see the usual month-end extension

light up. This month sees a fairly average-looking 0.06Y according to the

Bloomberg-Barclays index.

- There are some important data releases. At 0830ET, there are initial jobless

claims and the PCE report, including the much-watched core deflator. Later, the

market see Chicago PMI and Univ. of Michigan consumer comfort.

- The bond market will be closed for a long weekend, with no trading on Friday.

SIFMA recommends an early (2pm Eastern) close today.