US Long end yields are edging..........>

BOND SUMMARY: US Long end yields are edging higher, as noted the China PMI has

helped somewhat. EUR 2/10 moved 4 bp higher and 5/30 3bp this morning. Long

liquidation. We saw the same identical moves in US long end on Friday, with a

steady 2yr, and the big sell off in 10s... Large steepening. Started at

0900ET/1400GMT Friday, at the same time that Oil started dropping sharply.

- Is a big account liquidating/closing portfolio/position? Still quite unclear.

But many correlations have gone out the window since that Friday afternoon move.

* Dec Bund futures (RX) down 74 ticks at 170.33 (L: 170.32 / H: 171)

* Germany: The 2-Yr yield is up 1.4bps at -0.613%, 5-Yr is up 3.6bps at -0.546%,

10-Yr is up 5.7bps at -0.303%, and 30-Yr is up 6.3bps at 0.211%.

* Mar Gilt futures (G) down 58 ticks at 132.18 (L: 132.13 / H: 132.34)

* UK: The 2-Yr yield is up 3.2bps at 0.576%, 5-Yr is up 4.2bps at 0.555%, 10-Yr

is up 5.3bps at 0.75%, and 30-Yr is up 4.9bps at 1.258%.

* Dec BTP futures (IK) down 70 ticks at 140.59 (L: 140.56 / H: 141.27)

* Italy / German 10-Yr spread 0.5bps wider at 159.6bps

* Dec OAT futures (OA) down 79 ticks at 166.81 (L: 166.78 / H: 167.32)