US Treasuries are trading close.....>

US TSYS SUMMARY: US Treasuries are trading close to session highs, supported by

slightly better buying in UK Gilts, stable German Bunds and large buy in TYM8

call options. 10-yr Tsy yield is 0.13bp lower at 2.9329% while curve is modestly

flatter as 2-yr remains anchored.

- During Asia T-Notes stuck to a 2 tick range in the early part of the

Asia-Pacific session in what was an anaemic session in terms of news flow and

trading activity.

- Better buying was then seen as European session got underway and Eurozone

final service PMI was revised 0.3 lower to 54.7, following soft print from

Germany and Italy. While Gilts have have seen a mild bid so far today.

- T-note future then hit intra-day high of 119-25 shortly after TYM8 120.25

calls were bought at '12 in total of 29k

- Eurodollar strip is steady to 1.5 ticks higher led my move higher in blue

contracts, albeit in very light volume ahead of key event risks this afternoon.

- Attention is on release of latest jobs report and comments from Fed's Dudley,

Williams and Kaplan