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

US TSYS SUMMARY: US Treasuries are trading modestly higher having bounced of

session lows seen at start of London trade, as markets digest geo-political

tensions between US and Iran, G20 communique and speculation that the BoJ could

adjust monetary policy. US 10-yr note yield is 0.7bp lower at 2.84% with the

yield curve slightly steeper with 5s/30s 0.9bp wider at 26.9bps.

- Tsys ticked lower at start of Asian trade, but found a bid at same time as BoJ

offered to buy unlimited amount of 10-yr JGBs via fixed rate operation at 0.11%,

first since Feb. 

- Tsys slipped to fresh lows though as European trade got underway, but quickly

reversed to hit fresh session highs as markets digested the war of words between

Iran and the US and there appeared to be no consensuses from G20 summit. 

- There is only second tier US data this afternoon, existing home sales data,

while Fed officials now in blackout period ahead of FMOC meeting next Tues/Wed.

- Eurodollars are 0.5 to 1.5 ticks higher led by red and green contracts, albeit

in light volume, while US swap spreads and breakevens are slightly tighter.