There is a strong'ish risk-off......>

US TSYS SUMMARY: There is a strong'ish risk-off trade in markets that is

directly pushing Bunds and Treasuries higher. Maybe it is the 30th anniversary

of Black Thursday, perhaps the decline in the Hang Seng following the talk of a

potential Minsky moment in China or the Catalan news. All have likely

contributed to the Treasury bid.

- Currently, the 2Y UST yield is -2bp at 1.543% and the 10Y is -2.9bp at 2.318%.

Swap spreads are widening in the 2-5Y area of the curve, in the order of 0.5bp

as Treasuries outperform.

- Within the rotation from stocks to bonds, the yen has appreciated quickly from

113.00 to 112.64. Dow index futures are pointing to a 80 point drop at the open

of NY trading later today.

- On the same day 30 years ago, the Bond had a 7 point range. Let's hope there

is no repeat.

- Data is limited to initial jobless claims and Philly Fed.