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

US TSYS SUMMARY: US Treasuries are trading modestly higher, curve touch steeper,

underpinned by a dovish Riksbank, possible rise in trade tensions, but weighed

by bond supply. US 10-yr note yield is 0.4bp lower at 2.8985% with 5s/30s yield

spread 0.6bp steeper.

- In Asia, US Tsys slipped lower dismissing trade fears as it became apparent

that the 2 Koreas will hold a summit on Sep 18-20, with the 2 nations set to

discuss practical measures for denuclearisation.

- Tsys found a bid though on crossover to the London session, spurred by

surprise contraction in German factory orders and then following dovish take on

the Riskbank monetary policy statement that pushed back the timing of a possible

rate hike to Dec or Feb. 

- Bond supply from Spain, France and the UK then weighed on US Tsys temporarily,

before recovery to trade near session highs, before further selling came in.

- Eurodollar futures are 0.25 to 1 tick higher across the strip, as traders

await raft of US data to cross the wires later which included ADP numbers, ISM

non-mfg, factory orders and final durable goods orders.