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

US TSYS SUMMARY: US Treasuries are trading slightly higher, but roughly in the

middle of its Asia and London session range with little seen to direct markets

in either direction as markets await large 10-yr Tsy auction. 10-yr yield is

0.5bp lower at 2.9674%, curve steady.

- U.S. Tsys ticked lower in Asia after U.S. President Trump noted that U.S. GDP

could be "in the 5s next quarter," while he suggested that the U.S. will have a

fantastic trading relationship with China. The move though was limited and

retraced quickly.

- Squeeze higher in German Bunds and UK Gilts despite 10-yr supply from the UK

then underpinned mild bid in US Treasuries, volumes were very light however.

Comments from Italian PM Conte on the budget then saw BTPS rally to intra-day

highs which weighed slightly on Tsys.

- Eurodollar futures are 0.5 to 1.5 ticks higher with the strip a touch flatter

as green/blue contracts lead the move higher.

- There is limited US data today, however, markets looking ahead to the $26bln

10-yr Tsy auction later.