There is a small pivot of the US....>

US TSYS SUMMARY: There is a small pivot of the US yield curve this morning, with

the 2Y USY yield 0.1bp higher at 1.807% and the 30Y down 1bp at 2.72%. In truth,

market movement has been quite muted. 

- Swaps spreads are better bid at the front end of the curve and is largely

ignoring the significant Bund swap spread movement today.

- On the data side, it is quiet today with only the initial claims release; the

employment report is tomorrow.

- At 1600GMT a Basel III related speech might have significant implications for

money markets as clues may be given as to whether central banks reserves will be

excluded from the Leverage Ratio calculation. This could ultimately tighten the

spread between GCF and tri-party repo as the cost of balance sheet would fall.

Swap spreads might react today.

- Technically, the 10Y UST yield sits just above the 200 day moving average,

which sits at 2.303% and this is usually one of the strongest technical levels.

Without big important data, the downside for Treasury market yields looks

limited.