US treasuries slip lower from.......>

US TSYS SUMMARY: US treasuries slip lower from close of NY session during Asia,

but have since recovered and the 7-yr to 30-yr part of the curve are posting

small gains, taking cue from rally in both European and UK bonds following

disappointing data. US 10-yr yield is -0.5bp at 2.884%.

- Larger than expected fall in French and German flash PMI numbers was the

catalyst for a the recovery in the long-end of the US Tsy curve, however, the

short-end remained pressured by continuing UST supply and upcoming release of

Jan FOMC meeting minutes.

- Swap spreads and breakeven rates are little changed and showing no real sign

of direction just yet. 

- On the auction front Wednesday will bring 2-Year FRN's & 5-Year Notes to

market, while Thursday will herald the latest batch of 7-Year supply.

- Before the release of FOMC minutes, US data includes flash PMI numbers and

existing home sales.