Treasuries have traded in lackluster........>

US TSYS: Treasuries have traded in lackluster fashion today with futures a touch

lower across the board amid very little news flow.

- 2-year yields are trading at a key level in between their 55-DMA on the

downside and 21-DMA on the upside. The yield curve has not shown much action

trading at 24.68bps, even as the gap between short-and long-term inflation

expectations continues to widen, which is putting upside pressure on short-term

real yields and downside pressure on long-term real yields.

- The real yield on the 2-year is now 17.78bps higher than the real 10-year

yield, which is making a strong case that the end of nominal curve flattening is

coming. The upcoming release of U of Mich consumer confidence data may impact

the curve, particularly the spread of current conditions vs expectations. 

- Eurodollar futures continue to edge lower, adding to yesterday's losses. 

- 10-year note trades at 120-08+. 

- Yields at: 2Y: 2.620%; 5Y: 2.748%; 10Y: 2.871%; 30Y: 3.030%.