US Tsy futures operated in a choppy.........>

US TSYS: US Tsy futures operated in a choppy manner following the re-opening of

the cash Tsy space after the elongated holiday weekend, although the T-Note's

range remained relatively contained.

- The belly of the cash curve has outperformed and yields are off of session

lows that came on the back of a bout of broader risk off flows in Asia-Pacific

dealing, although there was no particular headline/fundamental catalyst to spark

the move.

- The Italian and Spanish political situation underpinned risk off flows on

Monday after a brief relief rally.

- Fed non-voter Bullard reiterated his dovish stance overnight urging caution in

near-term interest rate hikes, noting low inflation expectations & what he sees

as a neutral policy rate.

- The Eurodollar strip trades higher, with the white and red contracts trading

0.5 to 2.5 ticks better off.

- T-Notes last at 120.05, US Tsy yields: 2-Year 2.456%, 5-Year 2.730%, 10-Year

2.904%, 30-Year 3.072%.