Tsys were weaker on Tuesday on the.....>

US TSY/RECAP: Tsys were weaker on Tuesday on the back of a strong USD, although

volumes were muted owing to widespread European & Asian holidays.

- Tuesday was day one of the two day FOMC policy meeting, with no fireworks

expected. Focus remains on June re: the next probable FOMC rate hike (100%

priced in according to MNI PINCH).

- There was limited to no reaction to today's US data, as Tsys held session lows

on the back of the ISM manufacturing & construction spending data.

- DBRS confirmed US rating at AAA, trend stable.

- Tomorrow's Tsy refunding announcement is also in vogue.

- Modest option trade/mixed flow was noted, corporate issuance was also modest.

- Eurodollar futures were steady/mixed in the short end, at/near session lows at

the long end of the strip into the close.

- T-Notes last at 119.14, US 10-Year yield last at 2.964%