Treasuries have weakened in.........>

US TSYS SUMMARY: Treasuries have weakened in spectacular fashion since the

Friday close. Reasons include:

- A bad translation of a Davos comment by Kuroda that appeared to suggest that

the BoJ Governor saw inflation as "finally close to 2%" target, although he was

actually referring to inflation expectations.

- Goldman Sachs wrote a piece that Wednesday's FOMC could see an upgrade to

growth language in the FOMC Statement.

- The ECB's Klaas Knot argued for an immediate end to APP.

- Attention on the quarterly refunding later today (1500ET), given likely

increases in auction sizes (although these changes will be communicated in the

further details on Wednesday at 0830ET).

- The 10Y UST yield is 5.2bp high at 2.71%, the highest since Apr 2014. The

yield curve is being led by the TY future and the 7Y section of the curve. The

2-10Y spread has steepened 2bp to 56bp, although the 10-30Y spread has narrowed.

Swap spreads are noticeably wider as the swap curve suffers more because of MBS

convexity hedging fears.