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US Treasuries are holding onto......>

US TSYS SUMMARY
US TSYS SUMMARY: US Treasuries are holding onto small gains that occurred
overnight in Asia with 10-yr yield currently 0.7bp lower from US close at
2.264%, with the yield curve little changed.
- US Treasuries started Asia slightly weighed by comments from Fed's Williams
that he still saw 1 more rate hike this year and 3 more in 2018 and that it
would be appropriate to reduce balance sheet in September.
- Treasuries bounced off lows however, supported by block buy in US 10-yr
futures (+6k TYU7 @ 126-05+ at 2236ET) and then held steady until start of
London trading session.
- Long-end EGB supply and traders eying BoE monetary policy decision weighed on
German Bunds and UK Gilts at beginning of London trade which TSY took cue form.
Decent demand and recovery in Gilts then supported mild bid in Treasuries.
- Swap spreads are little changed apart from the 2-yr which is currently 0.55bp
higher.

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