U.S. Tsys came under pressure as the U.S....>

US TSYS: U.S. Tsys came under pressure as the U.S. 10-Year Tsy yield broke the

month to date high, with the belly of the curve experiencing some modest

underperformance, while a strong Aussie labour market report also pressured the

space.

- T-Note futures also managed to breach their month to date low.

- The Euro-dollar strip moved lower, in sympathy with Bonds, with a parallel

shift observed from the red contracts out. Steepener interest was noted in the

early part of the session as futures initially sold off, with the following

options trade observed later on: US EURODLR OPTIONS: EDM0 98.50 calls bought

against the EDF9 97.125/97.25 strangle, paper pays 3.5 for the calls on 5.0K

(5x1 ratio).

- Fed's Quarles will speak later on Thursday, with Bullard due Friday ahead of

Saturday's blackout.

- T-Notes last at 120.29, U.S. 10-Year Tsy cash yields last at 2.888%.