Treasury yields have drifted........>

US TSYS SUMMARY: Treasury yields have drifted sideways so far in European

session having fallen in late US and early Asian session on risk-off sentiment

that saw stocks in both regions fall sharply. Currently, the 10Y yield is -1.4bp

at 2.337% while curve is little changed with 2-yr/3-yr flatter by only 0.3bps.

- Swap flow has mostly been on the flattener side with a 10Y-30Y being done

early followed by a 3-5Y done just before 1000GMT. But there was a 10Y-30Y

steepener and a receiver of a $142k DV01 5Y-6Y-7Y fly - The curve flattening

trades has led to 30Y swap spread to tighten by 0.12bp to -19.87bp.

- US President Trump is widely expected to announce that the US recognises

Jerusalem as Israel's capital which could set-off renewed tension in Middle East

according to a host of Muslim countries.

- Data releases today sees the release of US ADP employment change and unit

labor costs at 0815ET and 0830ET respectively.