US Treasuries are trading steady....>

US TSYS SUMMARY: US Treasuries are trading steady to slightly lower in rather

lack-lustre trade as Japan and China observe national holiday's, while Europe

remains quiet ahead of May day holiday tomorrow.

- There has been buying in future space on any sign of weakness though with

first a 10-yr Tsy future block for 2.5k and then a much larger 5-yr block for

21k which both saw price levels rise following the notifications. 

- Currently 2-yr Tsy yield is little changed at 2.484%, 5-yr 0.5bp higher at

2.806%, 10-yr 0.75bp higher at 2.9643% and 30-yr 0.8bp higher at 3.1328%.

- In Asia, future traded in tight range, but on the soft side as markets took

note of North Korea decision to publically close its nuclear testing facility in

May. Slightly better than expected official Chinese PMI did little to help Tsys.

- Eurodollars are 0.5 to 1 tick lower apart from Jun8 & Sep8 which are +0.5

- key US risk events this week including PCE & MNI Chicago PMI data, due later

today, ISM M'fing PMI due Tuesday, FOMC MonPol decision & ADP employment data

due Wednesday, ISM non-M'fing PMI & factory orders due Thursday & NFPs due

Friday.