Tsys trading steady to mildly..........>

US TSY FLOWS: Tsys trading steady to mildly higher, quiet return from extended

holiday weekend. Equities drift off recent lows (SPX -7.75, 2769.25); US$ index

mildly higher (DXY +.106, 97.011). Data picks up Thu after Jan FOMC minutes Wed

and Fed policy REPORT to Congress ahead the Feb 26 semiannual testimony on Fri.

Trade focus as China officials visit DC Thu.

- Modest overnight trade, two-way through much of Asian hours, better selling by

fast$ in belly into London trade, bank portfolio buying 10s, macro fund 5s30s

flatteners into current steepening. March/June Tsy futures roll volume still

rather muted, expect pick up ahead Feb 28 first notice date.

- On tap for Tuesday, Fed Business Leaders Index, NAHB home builder index, 13-

and 26W bill auctions; Clev Fed Pres Mester, Eco-Forecast UoD Cntr for Eco Edu &

Entr, Q&A.

- Tsy cash/ylds: 2Y 99-31.62 (2.504%), 5Y 100-01.75 (2.486%), 10Y 99-21.5

(2.661%), 30Y 100-02.5 (2.995%).