Treasury prices have pulled back....>

US TSYS SUMMARY: Treasury prices have pulled back some of their losses from

yesterday afternoon. In Asian trade, this was a slow grind higher but in a brief

period in early Europe, stockmarkets fell rapidly and aided a risk-off market

move. 

- The exact cause of the equity slide was said to be linked to algos selling,

perhaps snowballing after what could have been a fat finger in the Fiat stock

price. 

- Treasuries ultimately benefited from the problems in Fiat's stock price and

the 10Y is currently 2.5bp lower at 2.385%. Trading is said to be thin and the

elephant in the room is the Senate tax reform vote that is likely later today.

- Short-maturity swap spreads are slightly narrower although there has been

scant swap market activity in the SDR today or overnight.

- The November ISM report will be released later today and is expected to fall

further away from extremely elevated levels.

- At present 2Y US yield is -0.4bp at 1.778%, the 10Y is 2.5bp lower at 2.385%

and the 30Y -2.9bp at 2.798%.