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US Treasuries are trading steady....>

US TSYS SUMMARY
US TSYS SUMMARY: US Treasuries are trading steady to slightly higher following
subdued 2-way flow seen during Asia and first half of London trade as markets
await key central bank meetings starting with the Fed later today. Tsy yield
curve modestly flatter as long-end outperforms while short-end remains anchored.
- 2-yr Tsy yield is +0.2bp at 2.541%, 10-yr -0.7bp at 2.9535% and 30-yr -0.8bp
at 3.086%.
- Tsy slipped lower in Asia, weighed by mild risk-on sentiment following
positive tweets on N.Korea from President Trump, albeit in light volume. Market
appeared to be waiting on FOMC decision later with eye on statement and updated
projections as 25bp rate hike fully priced in.
- Tsys recovered lost ground and then hit session highs following steady opening
in German Bunds and then rise in UK Gilts in wake of unchanged inflation
reading. However pared gains on poor German 10-yr Bund auction
- Eurodollar strip has been trading a tick above or below Tuesday close, again
in light volume though. Currently reds are 0.5 to 1 tick lower and blues steady
to 0.5 tick lower.

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