Treasuries spent the Asian..........>

US TSYS SUMMARY: Treasuries spent the Asian trading session doing very little in

particular. Equity index futures weakened markedly but the spillover into bonds

was limited. 

- Once again, the yen strengthened but failed to provide any benefit to

Treasuries. The S&P/Dow futures started to recover in the later Asian session

but the net move still points to a 133 point drop in the Dow at the US open. 

- It took a very weak print by the first German State CPI to be released

(Saxony) for Treasuries to pick up a bid. Thereafter, a USH8 blocked at 148-03

in 1.5k at 0853:49GMT , which looked like a purchase. 

- This Bond contract purchase has enabled the CTD into the contract, the 4.5%

2036 to generally perform better on the curve.

- Later today, the highlight will be the State of the Union address by Trump at

2100ET. Unfortunately, economic data are second tier with only Case-Shiller

house prices and the conference board consumer confidence data. 

- The interesting widening in the 3m EURUSD cross currency basis swap has

continued today and at -30bp, it is the lowest level for the year.