Treasury yields have continued to...>

US TSYS SUMMARY: Treasury yields have continued to head lower alongside weaker

equity futures, with key corporate earnings coming up.

- Tsy curve is bull flattening, 2-Yr yield down 2.5bps at 2.8832%, 5-Yr down

4.3bps at 3.0068%, 10-Yr down 4.5bps at 3.1524%, and 30-Yr down 4bps at 3.3478%.

- T-note Dec18 futures a little off day`s highs but up 10 ticks at 118-10 (high

of 118-135 earlier).

- Decent rally in Eurodollar futures, with the far end of the strip (Blues)

leading the way, up 5 ticks (earlier up 6.5-7.0 ticks).

- As we noted earlier, S&P500 mini futures are under pressure as risk sells off

this morning, trading through 2,739, the 50% YTD retracement. We have not closed

below here since July 5 and a move lower would weigh on risk sentiment across

asset classes (last trading 2,726).

- Dollar a little softer, DXY off 0.1% at 95.924.

- Fed's Bostic, Kashkari and Kaplan speak today, while key earnings reports

include McDonalds, 3M, Verizon, Caterpillar, Lockheed Martin and United Tech.