US T-Note futures have continued to trade...>

US TSYS: US T-Note futures have continued to trade within the range established

on Friday although have uniformly bounced off of the lows seen at the Friday

close to the upper end of the range. 

- The lack of news flow has allowed the ongoing trend of curve flattening to

resume, with the 2s10s spread edging down another 0.8bps to close in at support

at 41.09. 

- That said, the 30-year has underperformed since Thursday's strong auction saw

the price hit a 3-day high, which has seen the 10s-30s spread edge slightly

higher.

- Cleveland Fed's Loretta Mester will speak in Paris later today and any

comments could impact the short end given her hawkish comments last month. -

Eurodollar contracts have pushed higher following on from the rise seen on

Friday but a reversal in the 8-month downtrend is not yet evident. 

- T-Notes last at 119.14. US Tsy ylds: 2Y 2.549%, 3Y 2.685%, 5Y 2.830%, 7Y

2.930%, 10Y 2.960%, 30Y 3.098%.