10-Yr: -06/32..2.806%.. USD/JPY: 98.3090.. EUR/USD: 1.3601Offered: Treasuries are slipping with the issues of supply and rallying equities help dragon prices. The day will be devoted to the $24B 7-yr auction (equals: long day) which will pressure prices while additional supply will also show up and expectations for more remain high. The up-tick in Libor has added some concern but trade is still being hung by supply. The data will be a speed bump unless it is entirely off the mark, with the jobless claims continuing along down historic levels. The curve, after a rush to steeper levels, has been seeing some unwind driven flattening, with the 2-10-yr yield spread now 109. The dollar has been falling generally and specifically against the euro, which has been hovering around 1.3600. The yen has been knocked of along with the buck, running near 98.30.
