US treasuries are trading close.....>

US TSYS SUMMARY: US treasuries are trading close to overnight highs having

earlier faded earlier move lower in late Asian session, taking cue from rally in

Gilts following soft manufacturing and bank lending data. Volumes has been very

thin though due to holidays in China, Singapore and Europe today.

- Treasury curve is slightly flatter as 30-yr yield is currently 0.5bp lower at

3.118%, 10-yr little changed at 2.9513% and 2-yr 2.492% up 0.4bps. There was a

future block of 2.5k TYM8 a@ 119-17+ at 1053:55BST which appeared to be a buy.

- News that US President Trump has postponed the steel tariff decision for the

EU & other allies did little to stir Tsys, although T-Notes printed fresh

marginal Asian session lows on the headlines.

- The Eurodollar strip has operated in a limited manner, with the white and red

contracts 0.5 to 1.5 ticks lower and green and blues 1.5 to 2 ticks lower. More

action is expected this afternoon, with data including US ISM manufacturing.

- Swap spreads are mixed with 2s and 5s a touch wider, while 10s and 30s are

slightly tighter. While breakevens are little changed.