There is subtle weakness in the.....>

US TSYS SUMMARY: There is subtle weakness in the Treasury market on Wednesday as

the North missile firing is further into the rearview mirror. The 10Y UST yield

is 0.2bp higher today at 2.131% and the movement at other tenors is

approximately similar.

- Swap rates are 0.5-1.25bp higher across the curve but volumes going through

the swap markets are fairly low. There did appear to be a payer in 2Y2Y for

$100mln and payer of $200mln 5Y and are the main notable trades.

- Some weakness in red eurodollar contracts is evident from the red contracts

outward but little movement in the whites and greens.

- The Treasury market is spared any issuance today and must instead look forward

to a month-end extension of a decent 0.11 years according to the

Bloomberg-Barclays index.

- There is some evidence of switching to pre-October T-bills ahead of the debt

ceiling showdown.