Treasuries are under pressure.......>

US TSYS SUMMARY: Treasuries are under pressure again, with the 10Y up 2bp to

2.15% and bringing the 2-day net change in yields to 10bp. The curve is bear

steepening and mostly responding to risk-on capital markets and the pressure of

supply. 

- The Bund contract is also dragging at the Treasury market as it broke through

significant trendline support and accelerated lower. Strong UK CPI data added to

the bearishness for Treasuries. 

- Later today sees NFIB and JOLTS data. The latter were particularly interesting

when Yellen referenced the data regularly but have faded in importance now that

(lack of) inflation is a more pressing worry.

- The Treasury also sells $20bln of 10Y notes in a re-opening. Yesterday's 3Y

note auction was poorly received with a significant post auction downward

movement.

- Swap spreads and the cross currency swap market are little changed today.