Treasuries are being nudged.........>

US TSYS SUMMARY: Treasuries are being nudged lower, following the lead from the

Bund market and a risk-on approach in global markets. the VIX index sits at 11.5

vs the peak of 16.0 late last week. 

- Worth noting is that overnight GCF Tsy repo has moved higher to around 1.21%

in the past few days and the highest for a couple of months. Bill redemptions

and GSE money inflows are expected to take the rate lower on Friday and into

next week but the rate is putting slight upward pressure Treasury yields.

Yesterday's 1m and 12m bill auctions were poorly bid.  

- That said, it is the Bond that is weakest today, and this is the least

sensitive to repo.

- The market is waiting for the FOMC Minutes, in an otherwise third tier data

calendar. 

- 5Y and 10Y futures invoice spreads have taken a beating as risk-sentiment

improved in the past few days and the 10Y ultra is back to its lowest in a month

at -7.4bp.

- The curve is marginally steeper today with 10-Yr note yield up 0.7bp to 2.28%.