US T-note futures trade in a very tight.....>

US TSYS: US T-note futures trade in a very tight range after recovering losses

in the NY session yesterday to hover around th1 119-07+ level, in the middle of

their week-long range. Cash yields trade at 3.0554% down 0.18bps as the 2s-10s

spread maintains its recent downtrend, currently at 21.88bps. 

- Breakevens continue to head lower on the back of oil price declines with the

10-year just off ytd lows at 1.961%, keeping 10-year real yields just shy of the

1.1% level. 

- Correlations between US stocks and bonds has picked up in recent sessions but

remain quite low. 

- US conference board consumer confidence will be released later today and the

current conditions vs expectations spread may give some clues about the yield

curve based on the historical relationship.