Tsys were sharply lower on Monday......>

US TSY/RECAP: Tsys were sharply lower on Monday finishing near the lows, with

heavier futures volume observed .

- Less risk-on move than buyers making themselves scarce amid thin mkt/summer

conditions. Moderate sell interest hit an air pocket, triggering some

sell-stops, curve flattener unwinds by weaker hands were once again noted (2s10s

near 10bp steeper from last Thursday's settlement, 5s30s approx. 5.5bp steeper).

Tsy Block, +5,378 WNU, 156-21 buy-thru -16 post time offer; late steepener Block

+9.3k FVU 113-06.5 vs. -4k USU 142-26.

- The Eurodollar strip was mixed with the long end moderately lower, most of

strip went out at or near session lows.

- Eyes still on U.S. GDP later in the week.

- T-Notes last at 119.18, U.S. 10-Year cash Tsy yields closed at 2.954%.