Tsys have retraced following a......>

US TSYS SUMMARY: Tsys have retraced following a jump in the Asia-Pac session on

escalating tensions w Iran, with equity futures off the lows.

- Mar 10-Yr futures (TY) up 3/32 at 129-15.5 (L: 129-11 / H: 129-21).

- Stocks remain under pressure; S&P E-Minis down 20 points (-0.6%).

- The 2-Yr yield is flat at 1.5245%, 5-Yr is down 0.8bps at 1.5813%, 10-Yr is

down 1bps at 1.7777%, and 30-Yr is down 0.5bps at 2.2395%.

- Following Fri's Dec FOMC minutes suggesting IOER tweak is looking increasingly

likely soon, while signalled could move away from active repo ops by mid-Jan and

may buy Tsy coupons, the most notable w'end Fed speak focused on former Chairs.

- In particular, ex-Chair Bernanke said in a blog post and paper accompanying a

lecture that QE and forward guidance are effective and can provide the

equivalent of about 3 additional percentage points of rate cuts.

- Only data is Markit Services / Composite final PMI at 0945ET.