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US Treasuries are trading mixed.....>

US TSYS SUMMARY
US TSYS SUMMARY: US Treasuries are trading mixed in London session, but off
Asian lows, supported by rally in German Bunds. 10-yr Tsy note is unchanged at
2.294%, after screen buying in futures..
- There was a little bit of weakness in US tsys in Asia-Pac trade despite thin
news flow, with outperformance in stocks, with all indices in the green in Asia,
seen weighing. Sources noted some Asian credit selling in 5's and real money
selling across the strip. RBA left rates unchanged as expected but mentioned
that the strong AUD is likely to weigh on the economy.
- Further political turmoil in the White House with the sacking of Anthony
Scaramucci seemed to weigh on the Dollar, but provided little support to Tsys.
- Treasuries have squeezed off overnight lows though, taking cue from move
higher in German Bunds following minor downward revision to Eurozone
manufacturing PMI. This initiated some buying of downside protection with 124.75
puts bought.
- Traders noting decent screen buying in 5-yr Tsy futures in last few minutes
which was underpinned overall bid in US Treasuries.

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