Tsy futures have been underpinned from......>

US TSYS: Tsy futures have been underpinned from the off, as U.S. equity index

futures struggled from the get go. The risk averse start meant that the space

had already experienced a couple of spurts of buying activity which pushed the

contract higher in early dealing. The space then drew fresh support from the

soft internals of China's December trade data (with imports and exports both

moving into negative territory in Y/Y terms, printing well below estimates in

the process).

- Flow had been fairly limited elsewhere, with cash Tsys closed until the London

open, owing to a Japanese national holiday.

- The white and red Eurodollar contracts are dealing 2.0-3.5 ticks higher at

writing.

- Fedspeak to the fore this week, with Williams, George, Kaplan, Kashkari,

Harker & Quarles due throughout.

- T-Notes last 122.06, U.S. 10-Year cash Tsy yields closed at 2.701%.