Treasuries have been dragged........>

US TSYS SUMMARY: Treasuries have been dragged lower in the European morning by

hawkish-leaning inflation and activity data from the Eurozone.

- Jun 10-Yr futures (TY) up 2/32 at 123-16 (L: 123-15 / H: 123-22.5). High was

hit before a cavalcade of positive Eurozone data: Strong regional German

inflation and pan-Eurozone GDP estimate for Q1 among others. 

- Some steepening in the Tsy curve as the short-end has outperformed. The 2-Yr

yield is down 0.6bps at 2.2862%, 5-Yr is down 0.3bps at 2.3082%, 10-Yr is up

0.4bps at 2.5288%, and 30-Yr is up 0.3bps at 2.9579%.

- 3M10Y a little flatter though, -1.715 at 9.401 (L: 6.625 / H: 9.686).

- Eurodollar futures up 0.5-1.0 ticks across the strip.

- Data: MNI Chicago PMI due at 1345GMT, Pending Home Sales at 1400GMT.

- FOMC policy meeting also kicks off today. MNI`s preview out later today.