Tsys were trading mildly higher into...>

US TSY/RECAP: Tsys were trading mildly higher into the bell, with T-Notes

closing near the middle of the range and the curve running flatter. Risk

aversion centring on Italy was the driving force on the day.

- Elsewhere Fed Chair Powell said that the Federal Reserve needs to continue

gradually raising interest rates to balance both upside and downside price risks

at a time when unemployment is sub-4% and yet inflation remains puzzlingly tame.

- The U.S. data slate was light.

- The Comcast deal books were rumoured to be over $88bn, with an issue size of

$27bn. The 12-tranche deal priced late on, as follows: $1.75bn 2-Year Fixed +50,

$1.25bn 2-Year FRN at 3mL+33, $2bn 3-Year Fixed at +60, $1bn 3-Year FRN at

3mL+44, $2.5bn 5.5-Year Fixed at +75, $500mn 5.5-Year FRN at 3mL+63, $3bn 7-Year

Fixed at +95, $4bn 10-Year Fixed at +110, $3bn 20-Year Fixed at +140, $4bn

30-Year Fixed at +150, $2.5bn 40-Year Fixed at +175.

- Services PMI & ISM, as well as ADP headline on Wednesday. On the Fedspeak

front Powell, Brainard, Barkin, Evans & Mester will speak.

- T-Notes last 118.25, U.S. 10-Year cash Tsy yields closed at 3.063%.