Trading weaker, off early London....>

US TSYS SUMMARY: Trading weaker, off early London session lows. Tsys had bounced

w/Gilts in lead-up to and post soft CPI data, quickly recede following knee-jerk

react. Limited data at start of two-day FOMC, .25bp hike expected Wed, focus on

SEP/dots. Mkts also watching Facebook after shares tumbled Mon, data sharing

concerns, broader implications for tech stocks, potential risk-off trigger. US$

index firmer (DXY +.314, 90.079; off highs vs. GBP 1.4018 vs. 1.4066); equities

firmer (emini +5.25, 2728.0); gold weaker (XAU -4.3, 1313.55); West Texas crude

firmer after Mon sell-off (+.77, 62.83).

- Asia, Tsys opened steady to Mon's closing levels, held narrow range on light

two-way trade into London crossover

- London, weaker after bounce w/Gilts. Flow two-way in 2s w/bank selling front

end, buying 10s, Asian acct sales belly to long end.

- Swaps, marginally tighter for the most part, short end tighter, light

deal-tied flow, payers in 2s and 5s

- Eurodollar futures, weaker across strip long end underperforming, waiting on

latest 3M LIBOR set