US Treasuries are trading steady....>

US TSYS SUMMARY: US Treasuries are trading steady to lower, yield curve

steepening as the long-end underperforms, albeit in very light volume ahead of

US payroll data. 10-year note is 0.9bp higher than Thursday's close at 2.23%.

- US Treasuries started Asia with a mild bid tone underpinned by news of courts

in the US issuing subpoenas in relation to Jump Jr Russian meeting. While the

2s/30s and 5s/30s part of the yield curve flattened.

- Sentiment reversed at beginning of London session though and US Treasuries

drifted lower, seen weighed by upbeat German factory orders and then by downside

trades being bought in US 10-yr Tsy note options.

- The yield curve also reversed its overnight flattening move with 2s/30s now

1bp steeper and 5s/30s 0.5bp steeper.

- Markets are thin and volumes are low though as traders seen sitting on the

side-lines until release of US payroll and average weekly earnings data at

0830ET.