Yesterday was a day of two halves...>

US TSYS SUMMARY: Yesterday was a day of two halves for the UST market. Following

an aggressive sell-off led European government bonds which pulled USTs lower,

risk sentiment soured stocks began to sell-off and Treasuries pared the majority

of their losses.

- Today has seen Treasuries start the day on the backfoot again and the curve

has bear steepened once more. Albeit, losses are well away from yesterday's

lows, in what has been a very quiet Asian and European session. Particularly

given that Bunds and most of the EGB market are closed today for holidays.

- Later today will see Case Schiller housing data and consumer confidence data

both due for release, but both are likely to be largely ignored in a thin market

as market participants prepare for year-end.

- TY1 futures are down -0-1+ today at 128-15+ with 10y UST yields up 1.9bp at

1.899% and 2y yields down -0.1bp at 1.567%.