US Treasuries are trading...........>

US TSYS SUMMARY: US Treasuries are trading modestly lower but off session lows

as CNBC quotes President Trump saying that he is ready to hit China with more

tariffs. US 10-yr Note yield is 0.9bp higher at 2.8472% having hit intra-day

high of 2.8563% while curve is ever so slightly steeper with 2s/10s 0.3bp wider.

- Overnight saw US Tsys slip from US closing levels, spike higher on back of

softer Yuan fixing from the PBOC, but then slip lower once again as the Yuan

recovered on rumoured state intervention.

- There was more 2-way flow during London trade with Treasuries recovering lost

ground on back of risk-off sentiment as BTPS saw heavy selling in renewed

Italian political concerns, only for Tsys to drop back to session lows as Italy

played down those concerns.

- Heading into NY open Tsys pared losses once again as newswire flashed

headlines from CNBC quoting President Trump that he was "ready to go to" $500bln

on China import tariffs.

- Euro$ futures are off their lows but remain weighed with reds, greens and

blues are 0.5 to 1 tick lower