Treasuries open Tues NY weaker......>

US TSYS SUMMARY: Treasuries open Tues NY weaker after overnight 2way flow and

drift lower since 2:20am ET, as shorts set into 1pm ET $12B 30Y reopening.

Treasuries outperform core EGBS. FOMC begins 2day meeting widely expected to

result in 25bp rate hike. Alabama has special sENATE election for Senate. 

- TOKYO: Tsys began weaker and gradually crept higher in price. Asian central

bank buying in 5Y and 7Y notes aided the market, while other mild buying

occurred in long end. Asian stocks however traded weak, with China's Shanghai

stock index off the most, down 1.3% while Japan's Nikkei ended off 0.3%. 

- LONDON: Tsys peaked at 2:20am ET then drifted lower in muted action, with core

EGBs softer due to firmer UK inflation data. Banks did some 30Y buying, with

other long end buying too. End-users bought intermediates, while bank selling in

7Y notes. NYMEX crude oil rose 0.81% to $58.46 amid a pipeline leak. 

- OVERNIGHT REPO: Tsy 10Y, 3Y, 30Y bonds tight. 

- US SWAPS: Steady, mildly wider in intermediates. 

- US HIGH-GRADE CORPORATE BONDS: Most likely, only scant issuance expected

Tuesday.