There has been a fairly tight.......>

US TSYS SUMMARY: There has been a fairly tight range overnight. After having

reached a low late yesterday at 119-31+, the TYM8 contract peaked at 120-05 at

0800GMT before the UK Gilt market opened and started trading weaker, which took

Treasuries lower also. 

- Reports that Trump will push ahead with a steel and aluminium tariff

declaration (perhaps tomorrow) are failing to drive a risk-trade.

- The 3m OIS-libor spread reached a post-2016 high of 40.5bp. The wedge being

driven between OIS and libor is also aiding a widening in short-maturity swap

spreads and the 2Y is another 0.5bp wider this morning at 28.8bp - the best

level since May 2017.

- Attention has also gathered on the 2Y UST-OIS spread, which hit a recent low

of 7.9bp and stays at roughly that level.

- Looking ahead, the main event will be the ECB statement at 12.45GMT and Draghi

press conference later. US data include initial jobless claims and the Fed's Z1

flow of funds report.