Us Treasuries are trading...........>

US TSYS SUMMARY: Us Treasuries are trading modestly lower with the belly of the

yield curve seen leading the way, taking cue from sharp fall in UK Gilts with

upbeat Apply results also seen weighing on sentiment. US 10-yr Tsy yield is

1.6bp higher at 2.269%.

- Overall, market sources reported a quiet Asian session with US Tsys trading

modestly weaker, but this only drew in buying from trading accounts in 2-y and

5-yr notes, with similar interest also seen further out the curve in tens and

thirty year Tsys.

- Treasuries slipped further at start of London session on light selling that

was concentred in 5-yr and 10-yr part of the yield curve. Lower opening in UK

Gilts on concerns of reduced monetary stimulus in the next 6-months or so and

upbeat Apply IPhone and IPad sales weighed on prices.

- Swap spreads are moderately wider with the 2-yr seen leading the way at +1bp.

While Eurodollar strip is unchanged to lower, curve bear steepening as green and

blue contracts underperform.