Treasuries are down only slightly...>

US TSYS SUMMARY: Treasuries are down only slightly on Friday's close despite a

strong start to the week for equities and a general risk-on atmosphere (BoJ

easing, favorable COVID developments, Italy ratings reprieve among the factors).

- Jun 10-Yr futures (TY) down 7/32 at 138-28.5 (L: 138-24 / H: 139-01.5)

- A bit of bear steepening: 2-Yr yield is flat at 0.2243%, 5-Yr is up 1bps at

0.383%, 10-Yr is up 1.9bps at 0.6195%, and 30-Yr is up 2.4bps at 1.1936%.

- Same with ED strip: Whites up / Blues down 1-2 ticks.

- Focus this week is on the FOMC decision Wednesday. While widespread

expectations are that no big decisions will be taken, attention will be paid on

a mooted IOER hike, further clarity on the Fed's new facilities, and -

potentially - stronger forward guidance. Our full preview is out later today.

- Two Tsy auctions today: 2-Yr (1130ET) for $42bln and 5-Yr (1300ET) for $43bln.

- Reminder that NY Fed lowering daily avg Tsy buys to $10bln this week from

$15bln. Buying $7.5bln today.

- Light on data, with just Apr Dallas Fed Manuf (1030ET). Later this week we

will get Q1 advance GDP, Personal Income, Chicago PMI, ISM, and Factory Orders.