Treasury yields have risen..........>

US TSYS SUMMARY: Treasury yields have risen modestly as the market is tapping

its finger ahead of the release of the Jackson Hole schedule later tonight.

Currently, the 10-Year yield is 1.2bp higher at 2.18%. 

- The key risk-indicators such as gold and the yen show little direction today

but there is a small appreciation in European equities and the S&P mini is now

consistent with a small gain in US equities at the open. 

- The belly of the curve is marginally weaker but there is nothing earth

shattering going on in terms of price action.

- One large and interesting trade seen this morning was what looked like a payer

of the 4Y on a 3-4-5Y swap butterfly, which is a fly that is very sensitive to

interest rate expectations.

- In the bill market, there is growing upward pressure on October maturity

paper. In the past week, the Oct 12 bill is 4.5bp higher but the Nov 2 bill is

5bp lower on debt ceiling fears.

- Oil markets are watching Tropical Storm Harvey as it moves through the Gulf of

Mexico and approaches refineries in Texas.