Treasuries are rallying into the.....>

US TSY FUTURES: Treasuries are rallying into the July 4th holiday break, with

global growth fears continuing to mount.

- The latest salvo came from Bank of England Governor Carney, whose pessimistic

comments on the impact of trade tensions on growth shot global bonds higher.

- 10-Yr yields set for lowest close since Nov 2016, amid some strong bull

flattening in the curve. The 2-Yr yield is down 2.6bps at 1.7613%, 5-Yr i down

4.4bps at 1.7451%, 10-Yr down 5bps at 1.974%, and 30-Yr down 4.4bps at 2.5041%.

- Indeed, many segments of curve at flattest since FOMC decision on June 19.

- Sep 10-Yr futures (TY) up 13.5/32 at 128-3.5 (L: 127-23 / H: 128-05.5).

- Carney`s comments overshadowed Cleveland Fed`s Mester (hawk, non-voter) saying

`too soon to consider changing policy`.

- E.U. leadership decisions (Lagarde for ECB prez) had little lasting impact.

- No Fedspeak due until the 9th. And early close Wednesday for July 4 hols.

- US services and composite PMIs are up Wednesday, with ADP

employment change and trade balance data also due.