Treasuries are now trading flat.....>

US TSYS SUMMARY: Treasuries are now trading flat after earlier weakness, with

futures volumes beginning to pick up from a holiday slumber (233k TY traded as

of 0630ET is highest since Dec 19). Mar TYs down 0.5/32 at 128-13 (low: 128-05).

- Global risk appetite has been strong, with equities up (S&P futs up 0.5%);

little in the way of news triggers though. PBoC RRR cut seen largely priced in. 

- 10-Yr cash yields have fully reversed an earlier 3bps rise to 1.944% alongside

equity strength, now roughly flat on the day.

- Curve flatter: 2-Yr yield is down 0.2bps at 1.567%, 5-Yr is down 0.5bps at

1.6861%, 10-Yr is down 0.9bps at 1.9087%, and 30-Yr is down 1.8bps at 2.3713%.

- Data includes jobless claims at 0830ET and final Dec Markit PMI at 0945ET.

- No FedSpeak today; picks up Friday with several speakers.