Treasuries fell in the late US......>

US TSYS SUMMARY: Treasuries fell in the late US afternoon and the weakness

continued into the Asian morning with the TY contract bottoming out at 125-04 a

which point some bargain-hunters appeared.

- The market is besotted with developments surrounding the tax plan going

through Congress. The WSJ reports that House Republicans are facing a $74bln

revenue gap following amendments but aim to make changes on Thursday and proceed

to a vote next week. The Senate Bill is also due today and Trump claims that the

Democrats will "like it a whole lot more".

- In a Bloomberg TV interview, Treasury Sec. Mnuchin said that Yellen has yet to

decide whether to stay on at the Fed. 

- Yield movements have been extremely small so far today. The 2Y was last at

1.65% (+0.4bp) and the old 10Y is down 0.4bp. With a new 10Y benchmark, the

2-10Y spread has optically flattened to a new multi-year low of 66.6bp.

- Data is limited to initial claims and the Treasury sells 30Y paper to conclude

this quarter's refunding auctions.