Treasuries are under pressure.......>

US TSYS SUMMARY: Treasuries are under pressure this morning and underperforming

Bunds and gilts. USTs drifted lower through the Asian session retracing he moves

seen during yesterday's US session.

Treasuries moved lower on comments from Mnunchin that a deal between the US and

China is 90% agreed, with TY1 falling to 127-24. The move was partially retraced

but we have been trading in a 127-24 to 127-26 range over the past couple of

hours.

- Durable goods orders and trade data will be closely watched today. The

headline durable goods orders will be severely impacted by the fact that Boeing

reported no new orders for May, so the ex-aircraft figure will be more closely

watched.

- Looking ahead, USTs remain vulnerable to headline risk ahead of the G20

meeting.

- TY1 futures are down 0-10 today at 127-26.

- 2y UST yields up 4.6bp today at 1.752%, 5y yields up 4.2bp at 1.768%, 10y

yields up 3.6bp at 2.022%, 30y yields up 2.0bp at 2.540%