The UST market put in a strong......>

US TSYS SUMMARY: The UST market put in a strong performance in the US afternoon,

as the 7Y auction was cleared out of the way but the rally ran out of legs as US

traders closed up and went home. The 10Y UST yield travelled sideways in Asian

trade and the opening in Europe has not really created much in the way of

volatility. 

- Correlations with the yen are having limited influence upon the UST 10Y yield

again. 

- Currently, the 10Y UST yield is +1.2bp at 2.63% and this yield change is

fairly representative of what has been seen in other maturities.

- At 1200GMT, President Trump is due to speak in Davos and later on, Q4 advanced

GDP should be a significant driver of market levels. Durable goods and the

advanced trade balance back up an already decent calendar. 

- The 30Y swap spread needs mentioning today as it has widened 1.4bp and the 10Y

is 0.75bp wider. Swap volumes are fairly decent for this point in the day but

mainly in the 10Y rather than the 30Y. There is no obvious paying flow in the

long end of the swap curve.