Good morning. While YOU Slept Treasuries have been led lower by intermediates overnight with the UK/EU markets following along amid locally 'overbought' conditions here and historically elevated tactical longs (see 2nd bullet above). DXY is little changed (see attachments) while front WTI futures are higher (+1.7%). Asian stocks were generally higher, EU and UK share markets are all modestly higher while ES futures are showing -0.2% here at 6:45am. Our overnight US rates flows saw a heavy trade in Treasuries after Tokyo CPI surprised on the upside, pressuring long-end JGB's. We saw better net selling in intermediates and the long-end with the curve bear steepening. The London session was a bit subdued but fast$ was a pretty consistent seller of 5's and 7's this morning. As the desk noted today, real$ has been buying on the real rate story while HF's have been selling on the valuation story. Hmmm... We discuss this kind of tension below.