Treasuries have traded slowly and...>

US TSYS SUMMARY: Treasuries have traded slowly and surely lower in the Asian and

European sessions. It could have been worse because the Bund and Gilt markets

have been on the rack (the 10Y Gilt +4.4bp this morning). So far, the 10Y UST is

just 1.6bp higher than Monday's close at 2.357%.

- Considerable trading was seen in the eurodollar contracts, where quite

extensive option activity have been a one-way street on the bearish side.

Investors are starting the preparation for tomorrow's speech by Yellen and

Friday's employment numbers.

- Along the swap curve, the SDR has shown two-way curve trade activity, in

preference for outright duration trades. We have noted trades like 7-8Y

flatteners and 5-7Y steepeners.

- Selling has been concentrated on the TY contract; cash Treasury activity has

mostly been on the buyside and in the 10Y area in particular.

- There is little on the US data calendar today, although preparation for the

concentration of events from Wednesday may still keep the session active.