US Treasuries are trading lower,....>

US TSYS SUMMARY: US Treasuries are trading lower, led by the 2.2bp move higher

in 5-yr part of the yield curve mainly driven by future trading, with yield

curve bear flattening as 5s/30s falls by a further 1.7bps to 45.5bps.

- Overnight in Asia saw a future driven sell-off with light flows in cash

market. There was not much seen to trigger the sell-off, however, sources

pointed to weak JGB futures and jump in USD/JPY.

- The bear flattening move extended at start of Eurozone session as 30-yr yield

pared gains while 5-yr yield remained at session highs.

-  US 10-yr yield is trading 1.7bp higher compared to Tuesday's close at 2.554%,

while 30-yr is 0.4bp higher at 2.829%.

- Eurodollars though are modestly lower across the strip with a large buyer of

Dec8 (OEZ8) 98.50 calls seen.

- There are a host of Fed speakers this afternoon, including Chicago Evens,

Dallas Kaplan and Cleveland Mester which will keep markets on their toes.

- There is also the Bank of Canada rate decision at 1500GMT, with markets

expecting a hike of 25bps to 1.25%.