Treasuries have has a quiet session with....>

US TSYS: Treasuries have has a quiet session with the short end of the curve

underperforming as the 2s-30s curve has fallen 0.17bps to trade at 40.33bps. The

2s-10s curve has remained broadly flat at 24.49bps.

- The curve flattening contrasts to the trends seen in inflation expectations,

which are falling much faster at the short end. The real 2s-10s curve is already

inverted, trading at -17.9bps, suggesting there will be obstacles to further

nominal flattening. 

- Today's release of U of Mich consumer confidence data may impact the curve,

particularly the spread of current conditions vs expectations, given how closely

the yield curve has tracked the spread over recent years.

- Eurodollar futures have edged slightly lower adding to yesterday's losses. 

- 10-year note trades at 120-09+. 

- Yields at: 2Y: 2.602%; 5Y: 2.746%; 10Y: 2.870%; 30Y: 3.028%.