US Tsy futures were bid on Monday,.....>

US TSY/RECAP: US Tsy futures were bid on Monday, with cash markets closed for

Memorial Day & a shorter than usual futures trading session.

- The prospect of early elections and/or a constitutional crisis in Italy

against a backdrop of thin liquidity owing to UK & US holidays proved to be a

negative combination for risk assets, with Italian debt hammered after an early

relief rally.

- Former IMF-er Cottarelli's appointment as Italian PM-designate by the

President needs to survive a confidence vote, which will be tough going as

M5S/League hold a majority if they vote together. If Cottarelli does not pass

the confidence motion then an election could come "after August."

- Spain is also presenting its own political issues with PM Rajoy set to face a

confidence motion on Friday.

- Fed non-voter Bullard will speak in Asia-Pacific hours, with a slew of ECB

speakers due later in the day.

- T-Notes last at 120.07, US 10-Year yields closed on Friday at 2.931%.