There is little to report in........>

US TSYS SUMMARY: There is little to report in terms of net direction for the

Treasury curve from Asian and early European trading today. 

- Value-hunting arrived in early Asia and PM Abe's victory pushed USDJPY higher

and then the correlation to Treasuries required that yields fell and the

contract rose. However, that correlation-linked move failed to gather momentum

and the contract is back to lows of 124-24+. The recent low for TYZ7 is 124-22+

on Oct 6th, which would not take much of a push to cause an acceleration to the

downside. 

- On the issuance side, the penchant for European issuers to tap the front end

of the curve has continued this morning with ESM announcing at inaugural 5Y

dollar deal.

- So far, swap flow has been fairly limited on Monday. 

- Across the curve, demand has been strongest in the 7Y+ section of the curve.

Instead, the 5Y current and first old have traded heavily.

- At present the 2Y is +0.4bp at 1.58%, the 10Y +0.4bp at 2.39% and swap spreads

are  little changed. There is no significant data/supply today.