US Treasuries are marginally........>

US TSYS SUMMARY: US Treasuries are marginally higher than Wednesday's closing

levels with the exception of the 30-yr which is touch lower, in-turn bull

steepening the curve, as markets react to soft Asian and European equities, but

in-line Eurozone PMIs and stronger UK service PMI.

- 10-yr Tsy yield is 0.4bp lower at 2.8949% having traded in a 2.884% to 2.904%

range, while 2s/30s is 0.9bp steeper.

- Treasuries stuck to a tight range during Asia, weighed by upbeat Aus GDP

numbers, but finding support due to weak Asian stocks on EM concerns. Tsys edged

higher on cross over to London session but have since given up majority of those

gains with little seen to trigger the move as European equities and emerging

market currencies remain under pressure. Italy BTPs continue to rally though.

TYZ8 last +2 ticks at 119-31+ having hit high of 120-02+ earlier.

- Eurodollar futures are steady to 0.5 tick higher, strip touch flatter as Reds,

greens and blues see most buying

- Looking ahead only 2nd tier data from the US however expect comments from

Bullard, Kashkari and Bostic